MUNICIPAL ACCOUNTS

The size of the current receipts appears from the summary

Thus the receipts amount in all to 415 million kroner, of which a fourth is derived from property taxes, and a good half from income taxes. When making the assessment the actual income of the tax-payer may be increased up to 40 per cent. and reduced by a maximum of 85 per cent.; taking them all round, this is done according to the size of the income, the big incomes being increased, and the small ones reduced. On the incomeamount thus arrived at an amount is assessed by such a percentage as, in combination with the other revenues of the commune, is necessary to cover the estimated expenditure. By this means the tax even if the percentage is the same becomes progressive. In the country communes the rates may also be varied, and in the county communes these are the only taxes.

In the towns the rates have the character of a ground tax and a property tax (sites and buildings), in the country communes in addition that of a "Hartkorn" tax (tax upon land according to its fertility).

The current expenditure is as follows:

The current expenditure also includes the extraordinary expenditure for special purposes, as for instance the erection of poor institutions, schools, etc., as these capital investments do not yield any profit. Reckoned in this way the current expenditure of the communes totals 375 million kroner, or somewhat less than the current receipts.

About 18 million kroner, or 5 per cent. of all expenditure, go towards administration. The country communes are administered at proportionately less cost, than the town communes, as in the case of the former it is incumbent on the citizens as a civic duty to voluntarily perform certain of the work connected with the administration.

The social expenditure amounts to 104 million kroner, or more than a quarter of the expenditure as a whole. Poor relief rests with the communes, and costs 32 million kroner. Old age pensions are paid partly by the State and partly by the communes, the share of the latter amounting to 32 millions. The Relief Funds also support, without involving the disabilities entailed by the receipt of poor relief, persons who are destitute through no fault of their own. The expense amounts to about 6 million kroner. In respect of unemployment the expenditure of the communes is over 25 million kroner.

The biggest item of expenditure in the accounts is the cost of the schools about 60 million kroner. Combined with the ex

about 70

penditure of the State for education and science million kroner the sum spent on this account is thus comparatively very large. For medical purposes, which include hospitals, the communes spend 42 millions, towards the administration of justice and the police 24.9 millions, roads and drainage 44 millions, and as interest on debt 45 millions.

CAPITAL ACCOUNT, ASSETS AND LIABILITIES

As has already been indicated, it is not easy to separate the Capital Account from the current account, but consumption of assets and loans raised during the financial year of 1921-22 may be estimated at about 140 million kroner, and against this must be set expenditure in the form of repayment of debt to an amount of 57 million kroner, and an increase of holdings and of assets, which are not included in the current account, of 116 million kroner.

The balance sheet of the communes as at March 31st, 1922, shows assets to an amount of 1,253 million kroner, and indebtedness of 1,055 millions, so that the net assets of the communes amount to about 200 million kroner. The liabilities in some of the previous years appear below:

Even if the communes have simultaneously had the value of their assets raised, their liabilities have increased rather more rapidly than the population and the price-level.

AGRICULTURE

THE AGRICULTURAL AREA

Of Denmark's total area of about 4,302,000 hectares, about 76 per cent. is utilised for agriculture and gardening, 9 per cent. is timbered, whilst the greatest part of the remainder are areas which are useless for cultivation and agriculture.

From the year 1866 to 1919 the agricultural and gardening area has been increased by about 420,000 hectares, and the forest area by about 170,000 ha. These areas have in particular been reclaimed by cultivation of the heaths of Jutland, a work which, after the loss of Slesvig in 1864, was taken up under the auspices of The Danish Heath Society.

NUMBER AND SIZE OF AGRICULTURAL ESTATES This extension of the agricultural area has opened the possibility of the establishment of numerous new farms, but at the same time, by the division of bigger farms, new openings have been created, and the result is that the number of agricultural estates has been greatly increased.

Over 12 Tønder Hartkorn

Agricultural Estates

The "hartkorn" is a quality measure. One "tønde" hartkorn corresponds on the average to about 10 ha.

Divided according to the size of the agricultural area there were in 1919 the following number of estates with an agricultural area of more than 0,55 ha.:

It appears from this that the small farms are in great majority, but that by far the greater part of the agricultural area is taken up by medium sized farms with 15-60 ha, whereas the big farms cover only a comparatively modest portion of the area.

The cause of this great increase in the number of independent farms is, as already stated, to some extent the extension of the agricultural area; from olden times, however, Danish legislation has taken care to maintain the greatest possible number of independent farms, while in more recent times there have been positive efforts towards the establishment of new farms. With regard to the former it should be added that the greater part of the farms have been and are still protected by a prohibition against incorporation in large farms or concentration into bigger farms, whereas parcelling is allowed, although there is a prohibition against bringing the farms down under a certain size by parcelling. Since 1919 there has been a prohibition, applying to all farms, against the closing down of any farm without the approval of the Ministry of Agriculture. The positive endeavours for the establishment of new small holdings commenced in 1899 by an Act concerning the placing of land at the disposal of farm labourers. Under later Acts on the same subject, (the so-called "Small Holdings Acts"), the size of the established holdings was considerably increased. According to the Act of June 22, 1917, nine-tenths of the value might as late as 1923 be obtained in the form of loans and grants of a total loan value of 20,000 kroner. Out of this a maximum of 3,000 kroner was granted as a direct subsidy for the erection of buildings.