COMMERCIAL FLUCTUATIONS.

Evening Post, Volume CXV, Issue 73, 28 March 1933, Page 6

COMMERCIAL FLUCTUATIONS.

"Former days," writes "13/2413," "were not free from grievous commercial vloss • ?£JW IS e 9!ieli!t ;By decades since 1881; the average, yearly number of bankruptcies Has varied—lo6l; 4<S¥, ;316," 270 712: For, the year 1883 there -were 1656; ™a-;m the iyear 1919 only; 141.- Their tendency was -downwards from'the -ekrly W? 903'^ 11 rose "to, :the year 1814 falling-during the wan period, and finally, rising in- theJWs until the year 1930; showed 780, the next yeac gave 848, and the year- 1932 would - close wtih approximately 660. The average during ■50 .years was 565." Regarding his figures as proof that commercial fluctuation will always occur, and that exported produce will always fluctuate in price, the correspondent yet. seeks to stabilise-New Zealand farming by a system 6f movable interest or rent—by. a sort of sliding scale as-between'"the prices of the farmer's produce and what are now called his fixed charges, but which under this plan would

cease to be fixed. Why not "a reduction of interest or rent while low prices prevail? And the consideration will be the primary producer's awn promise to share the gain when high prices for produce are being received. This co-operative sharing, of gains and losses, caused only by a rise.or.fall from a named price, -will solvel the problem of changeable produce prices. If widely followed, it will be still one mo»e tribute'in the. praise of co-operation in primary industry.. And this way of making agreements for the sale or lease of.land, and for.giving relief to mortgagors and lessees, definitely relates payment for the -use of land to its productivity as measured .by market-prices for the produce." .-.He also contends that this plan would correct over-valuations or under-vahlations of. land. ,;Interest'.and rent, following price movements, would correct land values. Land'would' be transferred more readily, .for >' the'';;' producer would have relief. from: standing- charges in bad years, and ' would therefore buy land at less risk. \ -■ .":-v -:. iv ':' O»'X''