Commission speaks as follows of the transformation resulting in Ireland from the State-aid policy: "For many generations Ireland was one of the most distressed countries in the world. All of its evils were due primarily to absentee landlords and farm tenants. But within the last decade a wonderful change has taken place in the social and economic condition of the Irish peasant, brought about by the enactment by Parliament of what has since become known as the Irish land bill. This act created a royal commission, with power to appraise the large Irish land estates owned by absentee landlords at their real and not at their speculative value; to buy them, in the name of the Government, at the appraised value, plus 12 per cent bonus; to cut them up into small parcels ; and to sell them to worthy farm tenants, giving some 70 years' time in which to make small annual payments on the amortization plan, the deferred payments bearing but 3 per cent interest. In addition to this, the Government made personal loans to peasants sufficient to cover the cost of stock and farm implements, also payable in small annual installments, bearing a minimum rate of interest. The Government further furnished the various farm districts with farm advisers, trained graduates from agricultural colleges, who act as friend, adviser, and scientific farm instructor to the peasants. Within a decade the wretched and more or less law-breaking farm tenant has been converted into an industrious, progressive, and law-abiding landed proprietor; in fact, he has become so law-abiding that many jails in the farming districts, formerly filled with agrarian criminals, have been converted into public schools. England and Scotland.-Just prior to the outbreak of the present war the Government of Great Britain had agreed to provide a land-settlement policy for Scotland similar to that now operating in Ireland. Since the war began a parliamentary commission has been studying the subject in England with a view to providing, by public purchase and subdivision, farm lands for returning soldiers, these lands to be sold to soldiers on long-time terms with amortized payments and with low rates of interest. Already much has been done in England to provide farms for tenants under the small holdings act passed in 1908. Under this act estates are being purchased by the county councils, subdivided into small farms, and sold or rented to poor people. These farms are first improved by the erection of houses and other farm conveniences and then sold at a slight increase on the purchase price. Settlers are given from 30 to 50 years' time, with interest on deferred payments at 4 per cent. The significant fact is the price at which the Government buys this land. In England the average price has been $160 an acre; in Wales $105 an acre. For $150 an acre highly improved farms are being bought privately within 30 miles of the great retail markets of London. Since the war the Government of Great Britain has provided farms, being in size from 2 acres to 40 acres, for 20,000 soldiers. The Government pays for the land and will retain possession for an indefinite time, the settler paying a low rate of interest on the purchase price. Of the money needed to improve and keep these farms, the soldier is required to provide half and the Government provides the other half, and on loans that are amortized and run for about 40 years. Denmark. In 1899 the Danish Government, to prevent further and ruinous emigration began buying and subdividing large estates and selling them to those of its people who had the necessary evidences of character and farming experience and who were able to pay one-tenth the cost of the land and improvements. The Government, according to the last statistics available. has bought this land at an average price of $71.65 an acre. The settler is given from 50 to 75 years in which to repay this price, with an interest rate of from 3 to 4 per cent; and in some instances there is to be no payment of interest for the first five years. In recent years there has been much private subdivision carried on under public supervision. Associations formed for this purpose buy large farms and then subdivide and sell them to settlers at prices approved by the Government, which guarantees loans made by land banks to assist buyers to complete their payments. The average purchase price of land so bought on the islands was $102.04 and on the mainland $61.15 an acre. Since the war the Government has increased the part of the cost which the settler must furnish from one-tenth to one-fourth. Italy. The commission has been unable to get the latest reports on the land-settlement operations of the Italian Government or of the several associations operating under Government direction which carry on this business on a nonprofit-seeking basis. However, such valuable results have been obtained from State loans for making farm improvements and carrying out irrigation and drainage plans that such loans have now become a permanent State policy. The State loan is made for a period of 75 years with interest at 2 per cent. New Zealand.-The reasons for colonization in New Zealand are not unlike those in California. A country of 66,000,000 acres, about two-thirds the area of California, has a population of a little over 1,000,000, or about one-third that of this State. In order to bring about a more rapid development of the unoccupied land New Zealand adopted a system of issuing bonds for long periods of years, selling these bonds in London, and lending the money to farmers for the purpose of buying land and making improvements on it. In the eight years from 1906 to 1914 the Government loaned $72,726,800. The loans are made at 43 per cent interest for terms of payment varying from 20 to 36 years. Up to 60 per cent of the value of the property may be borrowed if the settler can give first mortgage security, or 60 per cent of his equity in the property if it is a leasehold. There are wide variations in land prices in New Zealand, due to differences in location and improvements. Generally speaking, however, land prices in New Zealand are high, relatively much higher than in Europe. The Australian States.-The most fruitful field for study of land-settlement operations is, however, the six Australian States. Especially is this true with respect to California, as the southern half of the continent has climate, products, and market conditions very similar to ours. The resemblance goes further. The two countries are peopled by the same race, and they have the same habits, the same social and political ideals, and very similar economic conditions. In the two most highly developed States of Australia, Victoria and New South Wales, there is another resemblance. There, as in California, the early land policies were unwise and profligate. Land was given away without regard to the needs and the rights of future generations. Great landed estates were created until, as pastoral pursuits gave way to cultivation and especially to intensive cultivation, there develaped an agriculture in which nonresident ownership and tenant farming were the dominating features. This was not regarded as desirable. It led to the inauguration of the present system of closer settlement. The plan of this system was to incorporate the following ideas: 1. Have the area of land large enough to give a living income for a settler and family. 2. Estimate in advance the capital needed to improve and equip that area and fix the proportion to be supplied by the settler and terms of borrowing the remainder. 3. Provide organized direction in the improvement of farms in order that the settler may earn a living in the least time and with the least expense. The systems now in operation in Victoria and New South Wales are alike in essential features, the only difference between them being the nature of the land title. In New South Wales the settler acquires only a perpetual lease, while in Victoria he acquires a freehold title. But in Victoria the title to the land does not pass to the settler for 12 years and can then only be acquired or held by an actual resident. This prevents speculators from acquiring land. As the working details of the system in operation in these States are likely to receive increasing attention here, those of Victoria are given in full. "GENERAL CONDITIONS GOVERNING THE SALE OF CLOSER SETTLEMENT LANDS IN VICTORIA, AUSTRALIA "1. Applicants, male or female, must be over the age of 18 years. "2. The maximum value of land which may be held by one lessee is $12,000, except in the case of an allotment where a valuable homestead is erected, when the value of the land may be increased to $19,200. "AGRICULTURAL LABORERS' ALLOTMENT TO 1,680 "3. Allotments are sold under a conditional purchase lease having a term of 31 years. Applicants are required to lodge a deposit equal to 3 per cent of the capital value of the land applied for, together with $6 lease and registration fees. In the event of an application being unsuccessful, all money lodged, less the registration fee of $1.20, is returned. “4. Residence upon the allotment, or upon the estate of which the allotment forms a part, or upon land adjoining the estate and not separated from it by more than a road or watercourse, is compulsory for eight months in each year in the case of a farm holding. In the cases of agricultural laborers' and workmen's allotments, residence for eight months in each year is also compulsory, and each lessee by himself or his family must reside on his own allotment. “5. Upon a farm allotment it is a condition of the lease that permanent and substantial improvements to an amount equivalent to 6 per cent of the capital value of the land shall be effected by lessee before the end of the first year. Before the end of the third year the value of the improvements must be increased to 10 per cent, and by the end of the sixth year to a total value of 20 per cent of the capital value of the land. Upon an agricultural laborer's allotment a substantial dwelling to the value at least of $144 must be erected by the end of the first year, and the boundaries of the allotment must be securely fenced by the end of the second year. "6. The Crown grant (freehold title) may be obtained at the end of any half year after the first 12 years of the lease have expired on payment of the balance of the purchase money. Perpetual residence by the lessee or occupier for the time being is required under the Crown grant. "7. The closer settlement acts provide that where through unforeseen circumstances settlers can not meet installments punctually, they may obtain temporary suspension thereof up to 60 per cent of the security value of the permanent and substantial improvements effected by them, or an advance up to the same amount, provided the installments are paid to date, may be obtained for a fixed period in order to enable them to continue working and further improve their allotments.. All advances or suspensions carry an interest charge of 5 per cent per annum upon the amount suspended or advanced. In cases where the amount of arrears exceeds the security value of the improvements, the settler is required to give a lien on his crop or a stock mortgage as further security until the arrears are extinguished or reduced to within the security value of the improvements. The maximum advance or suspension which may be made to a settler on a farm allotment on account of improvements effected within the first six years of his lease is $2,400. If the lease has been in existence over six years, and the certificates of compliance with the conditions of the lease have been obtained, the board may increase the advance by an amount up to 60 per cent of the principal which has been repaid, the total advance not to exceed $4,000. 66 PREPARATION OF LAND FOR IRRIGATION "The State renders the following assistance to settlers in the grading of land: "1. It rents settlers grading tools at the nominal charge of 60 cents a day, thus saving the settler a large expenditure in these implements. "2. It furnishes at a nominal cost contour plans showing the direction of the slopes, thus enabling the settler to tell how his land should be graded. "3. It grades a part or the entire farm in advance of settlement, and adds the cost of this to the price of the land." The settler, therefore, has the opinion of either doing his own work or of taking a block where a part of the work has already been done. Closer settlement in Victoria.-Under this act there have been purchased in Victoria 567,687 acres of land, the purchase price being about $37 an acre. About 15 per cent of the purchase price was necessary to cover expenses of supervision and settlement. The average price to settlers of the closer settlement lands has been about $45 an acre. The land so bought has been disposed of as follows: 500,819 acres in farm allotments, 8,829 acres as agricultural laborers' allotments; 4,112 settlers have secured farms under this State act. Closer settlement in the Commonwealth.-Between 1901 and 1914 the six Australian States purchased and subdivided 3,056,957 acres, for which $55,243,125 were paid, or about $18 an acre. In all of the States provisions are made to assist settlers to build homes and effect improvements needed to bring the land fully and promptly under cultivation. In the five-year period from 1909 to 1914 these six States loaned to farmers to make improvements and buy equipment $68,029,500. This has been done without any cost to the general taxpayer, as the interest paid by the farmers was greater than the interest paid by the State; and the farmers have met both pyments of principal and interest, so that there has been an accumulated profit of $1,233,370. Brazil.-In Brazil the Federal Government cooperates with the State governments, with the transportation companies, and with individuals in giving aid to settlers. The State government, with which the Federal Government has arrangements, will provide colonists with tools and seed. The farms, when near railroads, do not exceed 62 acres. If they are distant from transportation, they may be 125 acres in extent. The Government will, when requested, build good and sanitary houses, but immigrants who desire to erect houses at their own expense and to their own taste can do so. Improved farms will be sold either for cash or payments in installments. Where cash is paid a definite title is given immediately; where payments are amortized, title is given when payments have been completed. Those who purchase farms on the installment plan may pay off any part of the debt before the final date, and if this is done a rebate of 12 per cent is given on the installments paid in advance. For the first six months after their arrival, or until they harvest and sell their first crop, colonists coming from other countries may, when necessary, obtain loans to purchase food for their families and for the first year they receive medical attendance and medicine free of charge. The land, the improvements, and such aid as is not given free of charge are all lumped together in the debt for the land. The amortized payments for the land begin not later than the end of the second year, and the period for completing payments is five years when the lands are near railroads, and eight years when distant from them. In the State of Sao Paulo the price of land varies from $0.60 to $4.50 an acre and the annual payments vary from $30 to $90. In 1914, the year after State aid began, there were 1,600 applications for homesteads from the city of San Francisco. Settlement has been interrupted by the war, but it is expected to be active when the war ceases. Venezuela. The colonization act of Venezuela was passed in 1912. Immigrants acceptable under this act are individuals of the European race, persons under 60 years of age having good habits and health and good moral character. The Government officials are authorized to enter into arrangements with colonists to pay their expenses to the country and to see that they are sent free of cost to their farms. To the first hundred families who come under this act in each section of the country there are allotted 62 acres and 25 acres additional for each son over 10 years of age. After the first 100 families the rest of the land will be sold to colonists for 8 cents an acre, payable in 10 annual installments, the first payment to begin at the end of the first year. The first 100 families are given houses without rent for one year, tools, animals for cultivation, all the seed and livestock and food needed for six months in the hot parts of the country and for a year in the cold parts, and all necessary material for the construction of a house. All of the things so supplied to the settler must be repaid to the Government in five annual payments, which must be begun at the end of the third year. making the time of payment eight years. The Government supplies food and lodging for the colonists from the time they arrive in the country until they are located on their farms. Uruguay.-A bill for the promotion of land settlement in Uruguay is now before the legislature of that country. It has the support of the Government, and it is believed it will pass. It appropriates $500,000 to be used in purchasing and subdividing land. To furnish this money bonds are to be sold drawing interest at 5 per cent. The homesteads will be sold for cash or in installments covering a period of 30 years. The price of these subdivisions is fixed to cover the cost of land and expenses of building roadways, etc., so that returns from the land will reimburse the State for the expense incurred. The $500,000 is intended to be a revolving fund, and as settlers pay for their land new land is to be bought. No settler can buy more than one farm, but the size of these farms is not fixed in the act, that being left to the discretion of the Government commission, which includes the President and the Secretary of Industry and Labor. The farms are to be free of taxes for 10 years and exempt from judgment during the first year of possession. Mr. MEAD. I wish to submit a statement giving the conclusions based on more than a year's study of this subject by the State of New South Wales, Australia. That State is like ours, with the climate of California, and with many of its conditions closely resembling ours. They have invested about $40,000,000 in Government irrigation works. They had the question of finding people to settle the land under those works, and they had to determine what to do with a proposal to provide 6,000 farms for 6,000 families, and that meant that they had to look into what was involved in the creation, laying out, and development of farms for settlers. Mr. RAKER. That is the New South Wales settlement? Mr. MEAD. Yes. They realized that they must have people on the land; those people must be able to earn the money that was needed to make payments. And so they gathered together a group of men acquainted with their conditions, and in this exhibit which I will submit to you there is, first, a statement of the cost, which was estimated to be $95,000,000. It goes into the items of cost that the farmer must incur, and they are outlined so that you can understand them. It gives the capital that 1,200 settlers on the ground had when they were accepted, and at the end are those features of their colonization program which have been adopted. The State requires satisfactory evidence of knowledge, experience, character, and the possession of $1,500 capital. Provision is made for instruction and advice for the settlers. In addition to the settlers' capital the State will loan up to $2,500 to enable the settler to complete his improvements. Now, if he has $1,500 the State will loan him $2,500. The payments on the land and the loans will be amortized to run for 361 years. The CHAIRMAN. That means that he pays interest on it? (Exhibit 2 is as follows:) EXHIBIT 2 STATE OF NEW SOUTH WALES, AUSTRALIA-(A) ESTIMATED EXPENDITURE INVOLVED IN PROVIDING 6,000 FARMS FOR 6,000 SETTLERS 89. The expenditure involved under the agreement divides itself into four maiu classes: (a) Public works (not directly refundable). (b) Resumption of land for subdivision (directly refundable). (c) Advances to settlers, including sustenance (directly refundable). (d) Administrative expenditure from consolidated revenue (not refundable). It has been calculated that the following sums will require to be provided: Public works (as per paragraph 88): Railway construction__ Irrigation area-capital expenditure__. Land resumptions: 3,000 farms, at $7.776__. Less surveys and roads.. |