only for the GrAde

American Journal of Economics and Sociology, Inc.

Nationalist China's Land Reform in Formosa Author(s): W. L. Source: The American Journal of Economics and Sociology, Vol. 12, No. 3 (Apr., 1953), p. 300 Published by: American Journal of Economics and Sociology, Inc. Stable URL: http://www.jstor.org/stable/3484907 Accessed: 22-04-2018 20:18 UTC

JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide

range of content in a trusted digital archive. We use information technology and tools to increase productivity and

facilitate new forms of scholarship. For more information about JSTOR, please contact [email protected].

Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at

http://about.jstor.org/terms

American Journal of Economics and Sociology, Inc. is collaborating with JSTOR to digitize, preserve and extend access to The American Journal of Economics and Sociology

This content downloaded from 131.238.248.188 on Sun, 22 Apr 2018 20:18:46 UTC All use subject to http://about.jstor.org/terms

300 The American Journal of Economics and Sociology

Nationalist China's Land Reform in Formosa

THE LEGITIMATE GOVERNMENT of China, the Nationalist Government

which has its seat on the island of Formosa (Taiwan), has now completed its land reform, one which is in striking contrast to the bloody and ineffec-

tive one put into effect on the mainland by the Soviet Communist regime. The first phase of the program was introduced in 1949 when the Legis-

lative Yuan of the Chinese Government decreed the reduction of land rent

to a maximum of 37.5 per cent of the annual main crop. This measure enabled tenant farmers to increase their incomes by 30 per cent.

The second phase, which began in 1951, was the sale of public land to tenant farmers. In two years,.46,309 hectares (115,000 acres) of public land were sold to 90,906 tenant farmers.

The third phase was begun by the law enacted on Jan. 20, 1953, which provides for the purchase of excess land holdings from owners and for its resale to bona fide tillers. It is denoted by the slogan, "the land-to-the- tillers." The law allows landowners to keep three hectares (7.4 acres) of paddy field or six hectares (15 acres) of dry land. The balance of their holdings must be sold to the government.

The government is selling the lands acquired to tenant farmers, who will pay, altogether, the equivalent of two and one-half times the annual principal crop yield in ten yearly instalments. It is estimated that some 179,000 hectares (442,000 acres), about 70 per cent of the total tenant land in Formosa, will be redistributed under the program.

To obtain cash for the purchases, the government is floating to the public shares in government-operated enterprises. It is also issuing land produce bonds, denominated in either paddy rice or sweet potatoes. Thus these are commodity collateral bonds. They will be transferable and may be used as collateral in business transactions. The bonds will bear interest

of 4 per cent a year and will be redeemable in ten annual instalments. Under the Nationalist program, Formosa promises to become, like Den-

mark, another land of smallholdings, which in Scandinavia helped to make the country a center of culture and enlightenment.

The progress of this program will be followed with keen interest by all who are concerned for the welfare of the Chinese peasant.

W. L.

This content downloaded from 131.238.248.188 on Sun, 22 Apr 2018 20:18:46 UTC All use subject to http://about.jstor.org/terms