The New Peasant Ireland: I. Land Purchase

Irish Review (Dublin)

The New Peasant Ireland: I. Land PurchaseAuthor(s): Justin PhillipsSource: The Irish Review (Dublin), Vol. 2, No. 24 (Feb., 1913), pp. 635-640Published by: Irish Review (Dublin)Stable URL: http://www.jstor.org/stable/30062938 .

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THE NEW PEASANT IRELAND I.-LAND PURCHASE

By /USTIN PHILLIPS MR. ASQUITH, speaking on behalf of the Government, has

foreshadowed the introduction of a new Irish Land Bill. It is of vital importance to Ireland, that Land Purchase should be completed without delay. It is therefore the

duty of the State to pass into law, a Bill which will be acceptable to both landlords and Tenants, and which will be free from such financial defects as were evident in the Irish Land Act of 1903, and which have caused the deadlock in the working of the Act of 1909.

The Irish Land Act of 1903 was in active operation for five years, while the Act of 1909 has had a trial of three years. It is interesting to review the working of these two Acts, and to consider how far the anticipations of the Government have been realised.

For the purposes of Land Purchase, the estimated value of all the agricultural land in Ireland is fi85,ooo,ooo. Of this sum,

:ao,ooo,ooo was advanced under the Acts of I885, 1891, 1896, p88,466,93o has, up to the present, been accounted for under the Acts of 1903 and 1909, leaving roughly u76,5oo,ooo worth of land still unsold.

It cannot be denied that the Birrell Act has practically stopped Land Purchase. Some of the leading members of the Irish Parlia- mentary Party have pointed out that, for the year ended 31st March, 1912, the amount advanced under the Land Purchase Acts far exceeds the sum advanced in any previous year. In this they are correct, as in the last Report of the Estates Commissioners it is stated: "The Advances in year ended 31st March last (1912) (w7,869,248) exceeds those made in any previous year under the Land Purchase Acts.

But when the matter is more fully considered it can be realised how misleading this statement is. The Advances made in the year under consideration represent Advances for Estates, proceedings for the sale of which were instituted before the Birrell Act was thought of. To properly ascertain the progress of Land Purchase under the Act of 19o9, the figures necessary are those giving the estimated Purchase Money of the Estates, proceedings for the sale of which were instituted under that Act. They are as follows:

Year ended 31st March, 1911 ... 585 e1,435,369 Year ended 31st March, 1912 ... 475 o1,291,405

Decrease in 1912 ... I 10 143,964 635



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Thus we see that for the year ended 31st March, 1911, proceedings were instituted for the sale of Estates to the comparatively small value of s1,435,369, while the proceedings instituted for the year ended 31st March, 1912, show a reduction of j143,964 on this sum. Up to the 3Ist March, 1912, proceedings had been instituted before the Commissioners, for the sale of land, to the total value of t88,466,930, and of this sum d48,967,I87 has been advanced, leaving the estimated value of the land now pending for the sale at

h38,I85,480. If Advances continue to be made at the rate of just eight millions a year, the pending sales will be completed by 1917.

While the Act of 1903 was actively in force, proceedings were instituted at the rate of seventeen millions a year, while under the Act of I909, proceedings are at the rate of slightly over a million and a quarter.

Both landlord and tenant have had ample time to consider the Act of 1909, and from the figures already quoted it can be seen that they have passed an unfavourable judgment on it.

Now the question arises " "What are the Estates Commissioners doing with regard to compulsory acquisition of land ?" The answer is " practically nothing." They have never fully availed themselves of the compulsory powers vested in them under the Act of 190o9. Many landlords are anxious that the compulsory powers should be exercised in regard to their Estates, as they would probably obtain a better price, and the Purchase Money would be paid in cash, and not in Guaranteed 3 per cent. Stock. It is difficult to understand the attitude of the Commissioners in this matter, and the only explanation is that the working off of the arrears, which accumulated unde'r the Act of 1903, prevents them from giving a proper amount of attention to compulsory purchase.

Under the Act of 1909, the Purchase Money is paid in Guar- anteed 3 per cent. Stock, nominally equal to the amount of the agreed purchase money. This, simple though it may seem, is the principal cause of the decline of Land Purchase. It is admitted on all sides that the Irish fentnt is justified in his demand for a reduction of from 25 per cent. to 30 per cent. on his rent. It is also admitted that the purchase money which would give this reduction would not satisfy the landlord. Take a typical case to show how the sales work out. As the annuity payable under the Act of 1909 is fixed at the rate of 34 per cent., the purchase money to give a reduction of 30 per cent. on an assumed rent of qIoo would be k2,ooo, payable in Guaranteed 3 per cent. Stock.

i2,00ooo worth of this stock brings in an income of l60, and its 636



THE NEW PEASANT IRELAND

cash value at present market price-8 i-is ai,62o. Thus the landlord, if compelled to realise, would receive in cash rLI,62o.

Payment by means of stock, standing at such a discount, must materially affect sales, as the landlord looks on every agreed LIoo as worth only market value of stock, and consequently demands an enhanced price for his land. Furthermore, mortgages must be paid off in cash, and not by means of stock at nominal value.

It must, of course, be admitted that the stock issued under the Act of 1896 at one time went as high as I 13, but what has happened in the past fails to convince landlowners that Ioo worth of Guar- anteed 3 per cent. Stock at 8I is as good as nIoo cash.

There are numerous complaints from landlords that payment by means of stock spells ruin for them, and the tenants, on the other hand, if they pay a price assuring no appreciable reduction in their landlords' income, pay 20 per cent. more than they should.

It is a simple case of history repeating itself. The Ashbourne Act of I885 was from the start a success. By I891 over fIo,ooo,ooo had been advanced. It was then necessary that a further sum of money should be voted by Parliament, but instead, the Act of 1891 was passed. Whether it was the intention of Parliament to dis- courage Land Purchase in Ireland cannot be known, but the fact remains that the Act of 189I put a temporary stay on its operations. From the very date the Act came into force land purchase was paralysed. The applications were only slightly over half a million a year, whereas in the year I887, under the Act of I886, a sum of b3,700,000 was applied for, and the average yearly sum for the six years during which the Ashbourne Act was in force was x2,500,ooo. The total amount applied for from I891 to I896 was slightly over y2,500,000. The Act of 1896 endeavoured to repair the mistakes made in the Act of 189I, but with little success.

The Act of 1903 needed amendment in so far as its financial provisions were concerned, but the attempt made in 1909 to remedy matters was disastrous, inasmuch as it practically killed Land Pur- chase.

Should there be a rise in the price of Land Stock, Land Pur- chase would undoubtedly be encouraged; but the possibility is so remote that it cannot be considered.

Unpurchased tenants are becoming restive, and continue to demand that they be placed on a similar footing with those who have purchased. Their demand is a just one, and the urgency of their claims cannot be denied when it is remembered that every

637



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single penny paid in rent is lost, both to the country and to the tenant.

Regarding the working of the Evicted Tenants' Act, the Estates Commissioners in their last report, commenting on the working of this Act, state: " In this connection the Commissioners regret to state that in a number of cases in which Evicted Tenants have been provided with holdings and money has been expended on equipping the land with buildings, and on the purchase of live stock, the Evicted Tenants have failed to work the lands in a husband-like manner, and have either meadowed them or let them for grazing, and in some cases have not resided in their houses erected on the lands, and the Commissioners have under consideration the institution of legal proceedings for the recovery of the holdings and of the sums expended on the purchase of live stock, etC."

The amount of money spent by way of Advances and Free Grants under the Evicted Tenants Act and the Purchase Acts of 1903 and 1909 is considerable, as will be seen by referring to the latest published figures, which are : Total, c486,855, of which sum z285,oo6 was by way of Free Grant. To fully realise the importance of this matter, it should be mentioned that there have been some 13,000 applications for re-instatement received by the Estates Com- missioners, and of this number over Io,ooo have been considered. The result is that 1,720 Evicted Tenants have been re-instated by the Landlords and 973 by the Estates Commissioners under Land Acts of 1903 and 1909, while 462 have been re-instated under the Evicted Tenants' Act of 1907.

I recently examined the holdings of several re-instated Evicted Tenants, and while I am happy to say that in the majority of cases the land allotted is being properly worked, yet in a very considerable number of cases such is not the case. In many instances the house, the money for the building of which was provided by the State, either by means of a Free Grant or an Advance, is unoccu- pied. There is no furniture, nor does the house appear to have ever been inhabited. Grass is growing at the door-step, windows are closed up, the walls are rotting with damp, and a structure which cost the country 1i6o is lying derelict. In many more cases, the stock and farming implements, also purchased by means of State grants, had been sold, and the money realised, instead of being partly spent on re-stocking, was spent unproductively. Left without stock, implements or cash, the land is let for grazing purposes, and the newly re-instated Evicted Tenant settles down to live on the scanty income thus secured.

638



THE NEW PEASAN I RELAND

One glaring case came under my notice in Co. Wicklow. The Evicted Tenant was given a good farm, and a large Free Grant to assist him in working it. At the end of two years from the date of his re-instatement everything marketable had been realised on. The farm was stripped of all stock and implements, and nothing further being available, the tenant emigrated to America, leaving his wife and children at home to starve. The State has no means of recovering money thus lost.

Evicted Tenants are, in a number of cases, bad farmers, incap- able of properly working land, and sufficient care has not been exercised by the Commissioners in selecting the persons to be re-instated. Some of the Evicted Tenants, through years of partly enforced idleness, have lost all incentive for work, others were always worthless. On my mentioning this matter to a leading Government official 'prominently identified with the administration of the Land Purchase and Evicted Tenants' Acts, he agreed that many of the Evicted Tenants were not even trying to work their new holdings.

Furthermore, it frequently happens that Evicted Tenants who had secured employment in the cities and towns after eviction, have been given farms and houses in the country, but instead of going into occupation and living on them, they close up the houses, let the farms for grazing purposes, and continue to work in the city. Such action on the part of the re-instated is directly in opposition to the spirit of the Act, as it was never the intention of Parliament that such a thing should be allowed.

Neglect or apathy on the part of the Estates Commissioners is highly dangerous, and in the interests of the country, and of the deserving Evicted Tenants awaiting re-instatement, strict inquiry should at once be made to ascertain if the terms and conditions of the undertakings entered into are being carried out; to see if the newly-allotted holdings are being worked in a husband-like manner, if the houses are occupied and properly kept; if the value of the Stock bought by means of Advances and Free Grants has been maintained; and if farming implements, also bought by the same means, are intact and kept in proper repair.

Where, on inspection, it is found that buildings, implements or stock have been allowed to unnecessarily deteriorate in value, steps should be taken at once to dispossess the defaulters, and replace them by tenants who will cultivate and properly use the farms. Such action on the part of the Commissioners, far from being oppressive, would be but reasonable and just. When the wretched housing accommodation at present existing in many country districts in Ireland is considered, it is amazing that the Government should

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permit irresponsible tenants to close up well-built expensive houses, while hard-working, industrious labourers would be only too glad to have an opportunity of taking them at a reasonable rent.

The task awaiting the Government is to make Land Purchase again attractive. Whether the unsold land of Ireland is to be made the property of the tenant by compulsion or by voluntary agreement between the parties, aided by a generous State subsidy, is the problem to be settled. The end to be aimed at is apparent: the difficulty is to find the way.

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The New Peasant Ireland: I. Land Purchase

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