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The Pamphlet Collection of Sir Robert Stout: Volume 72

Part II. — Chapter VIII. — The Great Problem Solved.—A Remedy for Poverty by State Co-Operative Farming

page 20

Part II.

Chapter VIII.

The Great Problem Solved.—A Remedy for Poverty by State Co-Operative Farming.

It offers the following great advantages:—
1.A home to all who are in want, and cannot work.
2.Remunerative employment for all surplus labour.
3.It will totally abolish the poor rates.
4.It will find out impostors.
5.It provides for settlement of the land.
6.It provides means to obtain good immigrants.
7.It provides for giving trades or such technical education to our orphan boys and girls, also to the children of all parents desiring it, as will enable them to become good settlers, able to earn their own maintenance anywhere.
8.It will improve the morality of our rising generation.
9.It offers the best means of providing for local self-government ever yet brought before the notice of the public.
Estimated Cost to build, stock, furnish, and pay the First Year's Expenses of a 25,000-acre Farm.
£ s. d.
One building complete 8,000 0 0
Furnishing complete 3,000 0 0
Cowsheds, stables, piggeries, &c. 1,500 0 0
Tools, wagons, seeds, &c. 2,500 0 0
200 cows, at £3 600 0 0
4 bulls, at £25 100 0 0
50 bullocks, at £8 400 0 0
16 horses, at £8 128 0 0
12,500 sheep, at 5s 3,125 0 0
50 breeding-pigs, at £1 10s. 75 0 0
3 boar pigs, at £2 6 0 0
1,000 fowls, at 1s. 3d. 62 10 0
1,000 ducks, at 1s. 6d. 75 0 0
250 geese, at 4s. 50 0 0
250 turkeys, at 4s. 50 0 0
25 labourers, fifty-two weeks at 12s. per week, and their keep at 12s. per week 1,560 0 0
5 working-foremen, 52 weeks at £1 8s., and their keep at 12s. per week 520 0 0
To supply the store with tea, sugar, flour, and other necessaries 1,875 0 0
Carried forward 23,626 10 0page 21
Brought forward 23,626 10 0
One month's wages to the permanent staff, to have everything ready to start 187 6 0
Interest on £25,000, at 4 per cent 1,000 0 0
For extras 186 4 0
Total expenses of first year 25,000 0 0
4
Expenses of four farms 100,000 0 0
4
Expenses of sixteen farms £400,000 0 0
I propose that £400,000 should be expended as follows:—
£ s. d.
Sixteen buildings complete 128,000 0 0
Furnishing complete 48,000 0 0
Machinery, working implements, seeds, &c. 40,000 0 0
Cowsheds, piggeries, fowlhouses, wagons, &c. 24,000 0 0
3,200 cows 9,600 0 0
64 bulls 1,600 0 0
800 bullocks 6,400 0 0
256 horses 2,048 0 0
200,000 sheep 50,000 0 0
800 breeding-pigs 1,200 0 0
40 boar pigs 96 0 0
16,000 fowls 1,000 0 0
16,000 ducks 1,200 0 0
4,000 geese 800 0 0
4,000 turkeys 800 0 0
To provision sixteen stores for twelve months 30,000 0 0
480 labourers' wages and keep for fifty-two weeks, at an average of £1 per week and keep 33,280 0 0
One month's wages for the staff to have everything ready for the opening-day 2,996 16 0
Twelve months' interest on £400,000, at 4 per cent. 16,000 0 0
Balance for extras 2,974 4 0
Total expenses for sixteen farms £400,000 0 0
Here I will show by my calculations the annual expenses to keep or support these sixteen farms, with a staff of 432 persons, and 2,000 so-termed unemployed, at the following rates of wages and their keep, allowing very liberally for wear, tear, and breakages, fires lights, and medical comforts:—
£ s. d.
16 managers, at £300 4,800 0 0
16 doctors, at £300 4,800 0 0
16 clerks, at £100 1,600 0 0
16 assistants, at £50 800 0 0
16 schoolmasters, at £75 1,200 0 0
16 schoolmistresses, at £50 800 0 0
Carried forward 14,000 0 0page 22
Brought forward 14,000 0 0
16 male nurses, at £75 1,200 0 0
16 female nurses, at £50 800 0 0
48 cooks, at £50 2,400 0 0
96 tradesmen, at £100 9,600 0 0
160 farm-hands, at £50 8,000 0 0
2,000 unemployed, at £20 16s. 41,600 0 0
2,432 peoples' keep at £16 5s. 7d. per annum 39,585 17 4
Fires and lights 3,200 0 0
Wear, tear, and breakages 3,200 0 0
Medical comforts 4,000 0 0
Better table for the staff 4,000 0 0
Extras 4,118 0 0
Interest on £400,000, at 4 per cent. 16,000 0 0
Annual expenses £151,704 5 4
Multiplied by five years 5
Five years' expenses without returns £758,521 16 8

Thus we have provided employment for 480 labourers for fifty-two weeks at an average cost of £1 per week each and their keep. We have erected sixteen large buildings capable of accommodating from three to four hundred people each, with a hospital for males and one for females to each. We have furnished the buildings with everything necessary; we have well stocked the farms; erected all necessary outhouses, such as stables, cowsheds, piggeries, fowl-houses, &c.; provided all necessary machinery, working implements, wagons, seeds, &c.; and have stock worth £30,000 in the stores to commence with.

And these farms will offer remunerative employment to all surplus labour; they will provide a home for the aged and needy, and so totally abolish the present degrading system of relief by charitable aid. This scheme, when carried out, will give trades to all our orphan boys and girls, or such other technical education as will enable them to become good colonists, able to earn their own maintenance anywhere. It will offer the same privilege to the children of all parents desiring it. These farms will offer these same privileges to those who are in need for all coming time, and will be more than self-supporting. Is such an object well worthy of the spending of £400,000?

Allow me to show here the possible annual returns:—
£ s. d.
3,200 cows, at 2s. 6d. per week each 20,800 0 0
2,800 calves, at £1 each 2,800 0 0
200,000 sheep's clips, at 2s. per clip 20,000 0 0
160,000 sheep, averaging 14s. 3d. each 114,000 0 0
156,000 clips from lambs, at 1s. each 7,800 0 0
156,000 sheepskins, at 2s. 6d. each 19,500 0 0
800 pigs, 10 young each, 8,000, at 10s. each 4,000 0 0
Carried forward 188,900 0 0page 23
Brought forward 188,900 0 0
16,000 fowls lay 60 eggs a year each, 960,000; sell 800,000, at 6d. per dozen 1,666 13 3
160,000 fowls reared and sold at 1s. each 8,000 0 0
16,000 ducks lay 60 eggs a year each, 960,000; sell 800,000, at 6d. per dozen 1,666 13 3
160,000 ducks reared and sold at 1s. 6d. each 12,000 0 0
1,600 geese lay 10 eggs a year each, 16,000 eggs; 16,000 geese reared and sold at 3s. each 2,400 0 0
1,600 turkeys realise the same as geese 2,400 0 0
2,432 people produce and eat one shilling's worth of vegetables each per week 6,323 4 0
2,432 people require 885,248lb. of meat a year 116 bullocks, at £8 each 928 0 0
116 bullock-hides, at 15s. each 87 0 0
1,000 calf-skins, at 5s. each 250 0 0
3,000 bottles of calves-foot jelly, at 1s. per bottle 150 0 0
3,000 pints of neats-foot oil, at 6d. a pint 75 0 0
Interest on moneys lent in assisting settlers 3,000 0 0
Income on rent from land 6,000 0 0
Income on the purchase of goods and goods supplied 1,200 0 0
16,000 sheep at 50lb. each, 800,000lb.; 1,000 calves at 200lb. each, 200,000lb.; 116 bullocks at 600lb. each, 69,600lb.: total, 1,069,600lb., giving 184,352lb. for bone, call it 80 tons, at £4 per ton 320 0 0
Annual returns from sixteen farms 235,366 10 6
Multiplied by five years 5
Returns in five years £1,176,832 12 6*
As I propose placing four hundred families on the land five years fin succession, assisting each family to the amount of £50, they [paying 5 per cent, for the assistance, let us see what the amount of the returns will be in five years:—
Number of Years Families requiring Assistance Amount required annually Annual Income by Interest, at 5 per Cent.
£ £
1 400 20,000 1,000
2 400 20,000 2,000
3 400 20,000 3,000
4 400 20,000 4,000
5 400 20,000 5,000
5 years 2,000 100,000 15,000
As two thousand families are to have 100 acres of land each, at supposed a value of £1 per acre, let us see how much is returned to the State in five years by rent from land:— page 24
Number of Years. Number of Families settled. Amount of Land required annually. Value of Land, at £1 per Acre. Annual Income by Rent from Land at 5 per Cent.
Acres. £ £
1 400 40,000 40,000 2,000
2 400 40,000 40,000 4,000
3 400 40,000 40,000 6,000
4 400 40,000 40,000 8,000
5 400 40,000 40,000 10,000
5 years 2,000 200,000 200,000 30,000
It is evident that each family so settled ought to produce fruit, grain, or other products to the value of £30 to pay the interest on money, the rent on their land, and to feed and clothe themselves propose that the manager of each farm become the purchaser, this securing the settler a ready market. The manager would be able it give more than the producer could get in any other way, and the manager would be the person to find an outlet for the products. Allowing the manager net 2 per cent., let us see what the red would be for five years:—
Number of Years. Families producing. Annual Value of Productions. Annual Income, at 2 per Cent.
£ £
1 400 12,000 240
2 800 24,000 480
3 1,200 36,000 720
4 1,600 48,000 960
5 2,000 60,000 1,200
5 years 2,000 180,000 3,600
Each family would require from the stores annually clothes or groceries worth at least £20. The managers would be able to supply such settlers at cheaper rates than they would be able to get supplied anywhere else, allowing the managers only net 2 per cent, profit. Let us see the result:—
Number of Years. Families requiring Goods. Value of Amount required annually Annual Income, at 2 per Cent
£ £
1 400 8,000 160
2 800 16,000 320
3 1,200 24,000 480
4 1,600 32,000 640
5 2,000 40,000 800
5 years 6,000 120,000 2,400
page 25

Six thousand families have been supplied, although only two thousand are settled.

The £50 which I propose to assist settlers with as we place them on their own small farms, after having worked six or twelve months at one of the State farms, would consist of the following, or any other thing most needed:—
£ s. d.
One house, value about 20 0 0
Two calves, or one cow 2 0 0
Ten sheep, at 5s. 2 10 0
Two breeding-pigs, at 10s. 1 0 0
Ten fowls, at 1s. 10 0
Ten ducks, at 1s. 6d. 15 0
Four geese, at 3s. 12 0
Four turkeys, at 3s. 12 0
Tea, flour, sugar, tobacco, and any other necessary articles to the value of 22 1 0
Total £50 0 0

All of these would be supplied from the State farm. The managers of the State farms could also become the purchasers of all products from such settlers. Thus, as Mr. John Brooks, of Church-hill, Waikato, remarks, the small farmer will be saved the expense of the machinery necessary to render the produce of his few acres fit for the market, as he would be certain of a market for whatever he produced. Does the reader say the Government has no right to trade in this way? Let him not forget that the Government is Healing with that portion of the State in such a way as will provide a home and employment for all those who would otherwise be living upon the industry of the other portion of the State as paupers.

My total income for five years is made up by productions from the following resources:—
£ s. d.
3,200 cows, at 2s. 6d. per head per week 104,000 0 0
14,000 calves, at £1 each 14,000 0 0
1,000,000 clips from sheep, at 2s. per clip 100,000 0 0
780,000 clips from lambs, at 1s. per clip 39,000 0 0
780,000 sheepskins, at 2s. 6d. each 97,500 0 0
700,000 sheep sent Home frozen, at 15s. each 525,000 0 0
80,000 sheep supplied as food, at 10s. each 40,000 0 0
20,000 sheep supplied to settlers, at 5s. each 5,000 0 0
580 bullocks supplied as food, at £8 each 4,640 0 0
580 bullock-hides, at 15s. each 433 0 0
5,000 calf-hides, at 5s. each 1,250 0 0
800 pigs—40,000 young, at 10s. each 20,000 0 0
800,000 fowls, at 1s. each 40,000 0 0
333,333 dozen eggs, at 6d. per dozen 8,333 6 6
800,000 ducks, at 1s. 6d. each 60,000 0 0
333,333 dozen eggs, at 6d. per dozen 8,333 6 6
80,000 geese, at 3s. each 12,000 0 0
Carried forward 1,079,489 13 0page 26
Brought forward 1,079,489 13 0
80,000 turkeys, at 3s. each 12,000 0 0
400 tons of bones, at £4 per ton 1,600 0 0
2,432 people have produced and paid for vegetables 31,616 0 0
15,000 bottles calves-foot jelly, at 1s. a bottle 750 0 0
15,000 pints of neats-foot oil, at 6d. a pint 375 0 0
Five years' rent from land, at £1 per acre 30,000 0 0
Five years' interest on money lent to settlers 15,000 0 0
Five years' income by purchase of products 3,600 0 0
Five years' income by goods supplied 2,400 0 0
By the saving of £25,000 a year for five years, which would have been paid as poor rates 125,000 0 0
By five years' improvements to 200,000 acres of land, at £1 per acre 200,000 0 0
Five years' returns 1,501,832 13 0
Five years' expenditure 758,521 16 8
Five years' surplus over expenditure 743,310 16 4
Borrowed money to be paid back 400,000 0 0
Leaving a credit balance of 343,310 16 4
Properties of sixteen farms worth 380,104 0 0
Grand total credit to the State £723,414 16 4
This grand total is made up as follows:—
£ s. d.
Sixteen farm buildings 128,000 0 0
Furniture 48,000 0 0
Machinery, working implements, &c. 40,000 0 0
Cowsheds, piggeries, wagons, fowl houses, &c. 24,000 0 0
3,200 cows 9,600 0 0
64 bulls 1,600 0 0
256 horses 2,048 0 0
200,000 sheep 50,000 0 0
800 breeding-pigs 1,200 0 0
48 boar pigs 96 0 0
16,000 fowls 1,000 0 0
16,000 ducks 1,200 0 0
4,000 geese 800 0 0
4,000 turkeys 800 0 0
2,000 rented by settlers 40,000 0 0
220 bullocks 1,760 0 0
Provisions in store 30,000 0 0
380,104 0 0
Cash credit balance 343,310 16 4
Making a grand total of £723,414 16 4
page 27
Proposed Scale of Diet, also the Cost to food 2,432 People annually. (As there is so much flour, meat, and vegetables to be used daily, good soup and puddings can be provided every day. I have provided plenty of good wholesome food.)
Articles required. Prices paid. Quantity per Man. Required weekly. Weekly Expenses. Required annually. Annual Expenses. Five Years' Expenses.
£ s. d. £ s. d. £ s. d.
Meat 3d. per lb. 7lb. 17,024lb. 212 16 0 885,248lb. 11,065 12 0 55,328 0 0
Flour 1½d. per lb. 14lb. 34,048lb. 212 16 0 1,770,496lb. 11,064 12 0 55,328 0 0
Tea 1s. 6d. per lb. 4oz. 608lb. 45 12 0 35,616lb. 2,371 4 0 11,856 0 0
Sugar 2d. per lb. 1lb. 2,432lb. 20 5 4 126,464lb. 1,053 17 4 5,269 6 8
Cheese 3d. per lb. 2lb. 4,864lb. 60 16 0 252,928lb. 3,161 12 0 15,808 0 0
Butter 4d. per lb 1lb. 2 432lb 40 10 8 126,464lb. 2,107 14 8 10,538 13 4
Oatmeal 1d. per lb. 10oz. 1,520lb. 6 6 8 79,040lb. 329 6 8 1,646 13 4
Milk 1 pint 4 pints 9,728 pints 40 10 8 505,856 pints 2,107 14 8 10,533 13 4
Vegetables 1s. a week. Ad lib. Ad lib. 121 12 0 Ad lib. 6,323 4 0 31,616 0 0
Annual Increase of Sheep, Prices realised, and Income from Wool and Skins.
Number of Sheep on hand the first and following Years. Number of Lambs first and following Years. Number of Clips from Sheep at 2s. and Lambs at 1s. per Clip. Number of Sheep used on the Promises, at 10s. Number supplied to Settlers annually at 5s. each. Annual Income from Sheep used and supplied to Settlers. Number of Sheep sent Home annually frozen, at 15s. per Carcase. Annual Income from Sheep sent Home frozen, at 15s. per Carcase. 200,000 Sheep-clips at 2s. and 160,000 Lamb-clips at 1s. per Clip annually. Annual Income from 156,000 Sheepskins at 2s. 6d. each.
£ £ £ £
200,000 160,000 360,000 16,000 4,000 9,000 140,000 105,000 28,000 19,500
200,000 160,000 360,000 16,000 4,000 9,000 140,000 105,000 28,000 19,500
200,000 160,000 360,000 16,000 4,000 9,000 140,000 105,000 28,000 19,500
200,000 160,000 360,000 16,000 4,000 9,000 140,000 105,000 28,000 19,500
200,000 160,000 360,000 16,000 4,000 9,000 140,000 105,000 28,000 19,500
200,000 Nil 1,800,000 80,000 45,000 80,000 700,000 525,000 140,000 97,500
page 28

I am told by farmers and others that lambs will not realise 10s. each, whereas I show proof they will realise 14s. 3d. each. For instance, to feed the people on the State farms, I have shown it costs the State 3d. per pound for meat; but the State has not to buy the meat, it is bred and fed upon the estate, and lambs this year are sheep next year, and we do not require to eat the lambs. The State has 200,000 sheep to start with; I have calculated they will produce 160,000 lambs annually; the State gets rid of 160,000 annually, thus keeping up a standing number of 200,000. I have calculated 16,000 are required annually as food, and allowing they weigh 40lb. each, at 3d., it will amount to 10s. each. I supply settlers at the rate of 4,000 annually, at 5s. each, and send to England 140,000 annually frozen; and, if they only average 50lb. each, and are sold in a London market at 5d. per pound, it will amount to £1 0s. 10d. each. By my calculations I have allowed the State to net 10s, each. If so, there would be 4,000 annually supplied to settlers at 5s., 16,000 used on the farms for food at 10s., and 140,000 sent to England frozen at 15s. each: total, 160,000 sheep disposed of annually at the afore-mentioned prices, and the result is 14s. 3d. each. I am told calves would not be worth 10s. each. But the State will kill 1,000 annually for food, and calves at three or four months, if they only weigh 150lb., at 3d. per pound, would amount to £1 17s. 6d. each. Those not used would grow into cows or bullocks, and so replace older ones. I have only priced sheep's fleeces at 2s. and lambs at 1s. each, and sheepskins at 2s. 6d. each. It is a well known fact that sheep's fleeces will average from 3s. 6d. to 4s., and lambs from 1s. 5d. to 2s. each, and sheepskins will average 4s. each. It will thus be seen that I have allowed a big margin for expenses; so that the State would net what I have stated.

I have provided for 2,432 people, divided amongst sixteen farms: that would be 152 to each farm. I allow eleven of a staff to each farm as non-productive, thirty-one so-termed "unemployed," who only earn their maintenance, thirty others who earn 5s. or 6s. a week more than their maintenance, and sixty-five able-bodied unemployed who earn from 8s. to 15s. a week more than their maintenance. Then we have five tradesmen and ten permanent farmhands, who earn what they receive. Allow me now to apportion their respective duties, showing as plainly as I am able how it can all be carried on. We should have—
  • 11 of a staff non-productive;
  • 10 who earn their maintenance, could attend to 1,000 fowls;
  • 10 who earn their maintenance, could attend to 1,000 ducks;
  • 6 who earn their maintenance, could attend to 250 geese;
  • 5 who earn their maintenance, could attend to 250 turkeys;
  • 15 who earn 5s. or 6s. a week, look after 12,500 sheep;
  • 15 who earn 5s. or 6s. a week, look after 200 cows;
  • 8 able-bodied men, at from 10s. to 12s., look after 16 horses;
  • 8 able-bodied men, at from 10s. to 12s., look after 16 bullocks;
  • 4 able-bodied men, at from 10s. to 12s., look after 50 pigs;page 29
  • 5 tradesmen earning what they receive: thus leaving
  • 10 permanent farm-hands, and
  • 45 able-bodied so-termed unemployed, ploughing and fencing,—and producing all the requirements of the farms. It only
  • 152 requires a little thought to see how beneficial such a system would be to the colony. See the thousands of acres of land which would soon be under cultivation, the miles of roads that would be made, the country opened up, and the great increase of revenue by railway traffic.

To the credit balance, which I have shown in five years to be £743,310 16s. 4d., would have to be added the number of orphans who under a co-operative State system would be earning the cost of their own maintenance from the age of twelve to fourteen. This number may be fairly placed at five hundred, which, at a cost of £1 5 per head per annum, would be a saving of £7,500 a year. And I have shown that apprentice boys earn in addition to the cost of their maintenance £132 12s. each, and they only receive £67 12s. each. I shall allow there are three hundred such apprentices, from each of whom the State will be gaining £9 5s. 8d. a year, or a total saving per annum of £2,785.

£ s. d.
Saved in five years by orphans earning their own maintenance 37,500 0 0
Saved in five years by orphan boys apprenticed 13,925 0 0
Credit balance as shown for five years 743,310 16 4
Grand credit balance in five years £794,735 16 4

I think I have shown very clearly that a home with all reasonable comforts can be provided for all in need, so doing away with our present unsatisfactory and degrading system of relief. What is it makes people so selfish to-day but the fear of old age or adversity coming upon them and finding them without any means of support, and nothing but poverty and suffering staring them in the face? Then, we, the people, are one national family, and are bound to provide for our unfortunate sisters and brothers; and in what better my can we do so than by State co-operative farms?

* This does not include a saving of £25,000 a year in poor rates.