The outbreak of the World War suspended operations under the Act of 1908 and the com missioners were given other duties. After the war the subject was regarded from a new angle. The main object of the Small Holdings Colonies Act 1916 and 1918 was to provide small hold ings on specially favourable terms for ex-service men, and particu larly to promote the establishment of "colonies," i.e., groups of small holdings, which would facilitate co-operation among the small holders. Difficulties arose in connection both with the ac quisition and equipment of suitable land and also from the total unacquaintance, in many cases, of applicants with rural condi tions. Another act—the Land Settlement Facilities Act—was passed in 1919 to give further powers and simplify the somewhat complicated administrative machinery.
The net result of the effort was that a number of ex-service men were settled on the land at a lavish expenditure of public money, the total cost to the exchequer being about LI o,000,000. The purchase of land began just when extravagantly high prices were being realized in the boom of 1919-2o. The average rate of interest on loans was .64%, and the cost of building and general equipment was at its maximum, and about double that of pre war times. Many ex-service men, disappointed and discouraged by the delays, withdrew their applications. Those who obtained holdings were in many cases wholly inexperienced in farming, and had at once to face a period of steadily falling prices which ruined many old-established farmers.
The scheme for the settlement of ex-service men on the land under the Act of 1919 came to an end on March 31, 1926. Under the scheme 16,5oo small holdings were provided by county councils and county borough councils on an area of 256,000 acres. But it was explained by the minister of agri culture as the justification for further legislation, that there were known to be not less than 6,000 approved applicants who had not been provided with land, and that there was a further latent demand, the extent of which could not be estimated. There was, however, the minister stated, "no practical possibility under pres ent financial conditions, of satisfying the demand for further small holdings either under the Act of 1919, or the Small Hold ings and Allotments Act, 1908, owing to the statutory require ment that councils must only provide holdings on a self-supporting basis." The previous acts although providing certain facilities for the purchase of small holdings were mainly directed to the provision of holdings to be let to the small holders. They tended to dis courage purchase and encourage tenancy by the fact that a small holder wishing to buy his holding had to pay its full value over a term of years, with interest at the current rate on the deferred payments, whereas a tenant occupies his holding at a fair rent, which may bear no relation to the capital value and still less to the actual cost of providing it. The object of this act was to offer
applicants desirous of becoming owners terms equally favourable to those open to tenants. The act continued the existing powers and duties of county councils but authorized them if necessary to incur losses, which would be met up to 75% by the Treasury. The holdings may be let or sold. If let a "full fair rent," i.e., the amount a tenant might reasonably be expected to pay if the landlord did the repairs, is charged. If sold the price paid takes the form of an annuity equal to the "full fair rent" of the hold ing, payable in half-yearly instalments for a term of 6o years.
The terms "small holdings" and "allot ments" have long been in use, but the Act of 1926 instituted a new class. County councils are empowered to provide holdings comprising a dwelling house together with not less than 4o perches and not more than three acres of agricultural land which can be cultivated by the occupier of the dwelling house and his family. "Cottage holdings" are to be sold to the occupiers in considera tion of the payment of an annuity equal to the "full fair rent" for a period of 6o years. Only a bona fide agricultural labourer or person employed in a rural industry is qualified to become a purchaser. The county council has to be satisfied that he has the intention, knowledge and capital to cultivate satisfactorily the land forming part of the cottage holding. The term "rural industry" is defined as an industry carried on in or adjacent to a village, being an industry ancillary to the industry of agricul ture or horticulture.
One result of the English small holdings legislation is that county councils are now extensive owners of agricultural land. The power of acquisition was con ferred in 1908 and in the aggregate a considerable area is under the control and administration of the councils. At the end of Nov. 1924, 384,052 acres were in the possession of the English counties, the amount ranging from 27,861 acres held by Norfolk and 26,257 acres held by Somerset to 219 acres held by West moreland. Of the total area administered by the English counties about four-fifths is owned by them, the other fifth being held on lease. In Wales about 58,000 acres are administered under the act, making altogether about 442,000 acres in England and Wales. Nothing more forcibly demonstrates the progress of public opin ion than this large transfer of agricultural land from private to public ownership and the fact that it has been done by general consent.