DEFERRED PAYMENT AND AGRICULTURAL LEASE SYSTEMS.

Clutha Leader, Volume IV, Issue 195, 5 April 1878, Page 7

DEFERRED PAY ME NT AND AGRICULTURAL LEASE SYSTEMS.

' . We have been requested to publish, ;;|^om .'the Daily Times, the following letter 'by. Mr Connell which contains in- ; f formation of importance to many of our iireaders.:--- --■• Sir— The provisions of the new Land Act on the above subject appear Ito be very imperfectly known or understood by the settlers, and as I am : frequently applied to for information, I' 7 -and as a very^v^j portion of Crown land is about to be offered -for disposal, ; -Tiziy on the 15th prox. and Ist May next on these systems, I have thought it advisable to attempt shortly to explain and compare the two systems of ; -acquiring land. I have also the further end in view of using the facts > brought out in this letter forithe purpose >* Jas throwing further light upon the •question of the price of deferred payment land, which I will resume in a separate letter. As it may be of advantage to verify the statements made by- ? Teference to the various statistics, and yet inconvenient to set out the au'<\Ji "thorities in the text of my letter, I append the references in a footnote. It is well in the outset to bear in mind that the agricultural lease system ■ is by no means a thing of yesterday. It .., .has always been confined to gold-fields •or mining districts, and was initiated in the year 1860, the Governor being then lempowered to devise land for agricultural or business purposes 'on any part •of the gold-fields, but not exceding to •each person 10 acres in extent, (a) The area was in 1864 extended to 50 •acres, (b) and during the next two ■years a considerable number of free selectors spotted the runs with their ap--plications. In 1866 the whole question •of the tenure of the Otago pastoral licenses was dealt with by the Otago Waste Lands Act, 1866, and provision made for surrendering their then current licenses, upon which a very small Tent was payable, receiving a lease of their lands for an extended period, and =at a "fixed and much higher rental, (c) At the same time, the power to grant agricultural leases over any part of the •goldfields was, by " The Goldfields Act, 1866," curtailed, and this system of alienation confined to blocks" of land which were limited in gross area to •5000 acres, in not more than two blocks each, on any one Tun, and which were set apart by proclamation of the Governor. (©) The area which might be held under agricultural lease was inCreased in 1869 (c) to 200 acres. - It would pass the limits I have assigned myself in this letter, to enter upon an explanation -or history of the original rights of agricultural lessees •under " The Goldfields Act, 1866," and of the -subsequent legislation affecting them up to and including that of last session. The subject is one of interest ■and importance to a large body of our settlers folding under these titles, and on a future occasion I may take this matter up also. Meantime my desire is to place side : by side the respective advantages and drawbacks ofthe deferred payment and agricultural lease systems, as these systems will operate in respect of future sattlement, leaving over to another occasion the consideration of the case of those who have already acquired holdings in the past tinder Acts now repealed. Tn order to introduce the subject with satisfaction to myself, it would be necessary to trace the gradual change which is to be observed in the administration of the •Goldfields Act, 1866, and the Land Acts, 1866 and 1872, with regard to the lands opened on the goldfields for agricultural leasing, and for absolute sale, and also the comparatively recent ■extension of the " Hundreds " system to the goldfields, the whole of the change being in the direction of more advantageous settlement for the people at large:; hut I feel I must refrain from ■doing this also, on the ground that my letter would reach too great a length. 1 may, however, say in passing that great practical benefits were obtained for the settlers at large hy the change in the spirit of administration I have adverted to, and that it was due, I believe, almost entirely to the indomitable energy, and ability of Mr Donald Heid, who, during that period, was Secretary of Lands and a Commissioner of the Waste Lands Board,,, and to whom the Otago settlers owe very much more than they are atfall likely to.realiip <, Itis, however, important to note %gj£p ne of the effects of the •change" tfras to put an end to the coniinement of agricultural leases to the entire lands comprised in isolated proclaimed blocks, and to intersperse the -sections set apart for agricultural leasing with sections for absolute sale. The deferred payment system, also first brought into operation in 1872 (f), at 'first confined to isolated blocks, was .gradually -extended to Hundreds, and sections selected alternately for absolute sale and for sale on deferred payments ; the 'sale of the sections for immediate payment being deferred until the deferred payment selectors had taken up their lands. An opportunity was given for those whose capital admitted of it purchasing adjoining lands, and thus farming four or five hundred acres, whilst those of smaller means could confine their operations to the 200 acre allotment secured on deferred payments. The* practical value of this method of administration can scarcely be estimated but" by ihOse 'firariliar with the abfiial

settlement of tbe country, and it is entirely due to Mr Reid, by the passing of The Land Act, 1877, and The Mines Act, 1877, which latter Act in many important parts is simply a transcript of The Goldfields Act, 1866, together with the system of popular administration initiated by Mr Reid, and adopted, and consistently carried out by the Waste Lands Board. Tt is now possible to constitute Hundreds on goldfields, to set apart lands in Hundreds, or over which the pastoral lease has been cancelled or determined, partly fbr immediate sale for cash, partly on deferred payments, and partly on agricultural leases. On the 15th proximo, and on the lst May next, a very large area will be opened on the goldfields at Tuapeka, Table Hill, and Waiberao, on each and all of these systems. It is the purpose of my letter to exhibit the comparative merits of each, which I now proceed to do. It must, however, be borne in mind that the deferred payment system applies not only to rural land, but to suburban also, and that the conditions are different from rural and suburban lands. I refer to rural only. DEFERBED PAYMENT AGRICULTULAI, LEASE SYSTEM. SYSTEM*. Rural Land. 1. Residence. — Per- 1. Residence. —No Bonal residence on allot- personal residence nement required for six cessary. years from issue of license, commencing not later than six months from same date (i) I 2. Improvements. — 2. Improvements. ~ The following improve- The following impi-ove-ments must be effected : ments must be effected : First year. — One First year. — Onetwentieth of land eighth of area must cultivated. be cultivated, or Second year. -A se- one-fourth substancond twentieth the tially fenced in ; same. or if timbered land, Fourth year .—Other one-eighth cleared. two twentieths. Before a lessee is Sixth year. — Inaddi- allowed to acquire tioc to foregoing the fee simple onecultivation of one- halt of the area fifth of area, selec- must have been tor must put sub- planted, cultivated stantial permanent or otherwise imimprovements on proved, (q) allotment equal in value to 20s per acre, (j) 8. The terms of the 3. The term of the license is ten years, and lease is for 7 yeais, and for allotments for whicli for allotments for which there has been no oppo- there had been no opposition the payment of sition the payment of 3s per acre per annum tbe rent only, viz., 2s fee till the end of the 6cl per acre for the full term entitles the licen- term, and for a further see to a Crown grant, extended term of other ( K ) 10 years entitles lessee to a Crown grant, (r) Note. —These pay- Note. — These payments are equal to a ments are equal to a present cash payment present casb payment of 20s Ud per acre, com- of 22s 9H per ncre, pound interest being compound interest allowed a.t the rate of 8 being allowed at the per cent, per annum. rate of 8 per cent, per annum. 4. The licensee may, 4. The lessee may, at at the expiry of six the expiry of three years, acquire the fee years, acquire the fee simple by payment of simple by payment of balance of price, viz., 20s per acre, provided 12s per acre, (l) improvements effected above, (s) Note. —If licensee Note.— lf tbe lessee pays balance of price at acquires the fee simple end of six years bis at the end of 3 years, total payments are equal his total payments are to a present pajmient of equal to a present paySis sd, compound in- ment of 22s 4d, comierest b ing allowed at pound interest being al--8 per cent. lowed at 8 per cent. 5. If more than one 5. If more than one applicant for same sec- applicant for same section, land, goes to aue- iion, land goes lo auction among applicants, tion among applicants, when the biddings aug- when the biddings are ment the total price of for a sum' by way of the land, which is re- bonus or premium, the distributed equally over rent in all cases remainthe ten years, (jr) ing at 2s 6d per acre. 6. Area— Allotments 6. Area— Allotments may not exceed 320 may nofc excaed 320 acres, (o) acres. 7. Applicant required 7. No deposit redeposit with his appli- quired witb the application an amount equal tion, nor until theapto one-twentieth of plication is decided (t) price of laud, which is and granted, forfeited if ho neglect or refuse to take up his license, (n) Applicants are al- Applicants are allowed to apply for as lowed to apply for as many sections -as they many sections as they please, but must deposit please, the above amount for each allotment. The most important features of the tvvo systems are set out above, but for a complete understanding ot the subject it is necesspry to study the Acts themselves.

(a) Goldfields Act, 185S, 1860, section 3. (b) Goldfields Acts Amendment Act, 1865, section 26. (c) The Otago Waste Lands Act, 1866, sections 69 and 72. (d) The Goldfields Act, 1866, section 33. (E) The Goldfields Act Amendment Act, 1869, section. (F) The Otago Waste Lands Act, 1872, se'ition 47, et (iKLand Act, 1877, section 63, sub. 4. - "(J) Land Act, 1877, aection 63, sub. 5, 6, 7, and 8. i . » » (k) Land Act, 1877, section 63, sub. 1, and section 73. (l) Land Act, 1877, section 63, sub. 9. (m) Land Act, 1577, sections 54 and 55, (N) Land Act, 1877, section 55. (O) Land Act, 1877, section 57. (r) Mines Act, 1877, appendix B, section 18. (Q) Mines Act, 1877, section 49. (R) Mines Act. 1877, sections 55 and 49. (s) Wines Act, 1877, section 49. (T) Mines Act, 1877, appendix B, section 12.

The above comparison shows, to put it shortly, that the agricultural lease system possesses the following advantages over the deferred payments : — Ist. No residence necessary. 2nd. Less onerous conditions of improvements. 3rd. The fee simple may be acquired m half the time. And on the other hand is subject to the following drawbacks as compared with the other : — lst. The price is slightly higher — viz, (when reduced to the common measure of a present cash payment)" 2s 8d per acre if the price is paid by holding on to the end of the term, or lld per acre, if the fee simple is acquired at the earliest period allowed by law. 2nd. If the application is opposed [aud goes to auction, any additional

price must be paid at once in a lump sum as premium.

It must be stated that the above comparison is instituted on the supposition that 30s per acre is the price of deferred payment rural land. I propose as shortly as possible, ih another letter, to show that to apply the. price of L 3 per acre practically to work the Land Act will involve consequences so peculiar as to amount to a demonstration that it could not possibly have been the intention of the Legislature to fix the price of deferred payment land at that figure. I can scarcely estimate with what force or effect the reductio ad absurdum method may have upon the minds of gentlemen like your correspondent "■•Lex," but with practical thought possibly unlearned and "instinctive" exegetes like myself it is not altogether despised. — I am, &c, J. Aitken Connel.