ADJUSTMENT OF VALUES

Evening Post, Volume CXVII, Issue 71, 24 March 1934, Page 12

ADJUSTMENT OF VALUES

(To the Editor.) Sir,—-After nearly three years of slump conditions and the largest export business of New Zealand facing a crisis and definite statements issued by farmers and farmers' unions that the dairying industry cannot pay mortgage interest on account of the low. price of products and high value of land, why is it that the Government will not face up to the revaluing of land and adjustment of mortgages and equities? It'must be quite clear that the people cannot pay increased | prices for milk products, nor is it desirable that such prices should be raised to decrease consumption and impair the community's health. If prices are increased, which will only mean another dairying subsidy, it is more than likely the people (the consumers) who •' can eventually decide whether they will pay the price or go without, will decide that they will not pay increased prices but prefer to do with less of these products; then where will the dairy farmers be?' - -, " ' ."■•;'

It is abundantly clear that the writingdown of land throughout the Dominion must take place, so why not face up to the position now, and as the. loss must occur it should he borne equally by the mortgagee as well as the owner and both mortgage and equity should be /written down in proportion to the loss arising from the new valuations. It is unjust that the owner, should lose all his equity and rhe mortgagee become the owner of the properties; they are both the victims of circumstances beyond their control; to put the eountrjy right again each should bear a proportion of the loss arising. The Government should give this matter its immediate attention; ,nothing can be gained by side-stepping the issue. There are three months before Parliament opens, and the Government should now formulate a plan, calling; on all the economic authorities in New Zealand'to assist, so that some early step can be taken to help. I venture to think and to hope that the economists of New Zealand, who must have the good of the country at heart can and will devise some plan, without Government pay and for the" good of their country. Nothing of note has been put forward by them to cure the slump, but with this definite step' now standing out so clearly to be taken promptly, I believe they will help the Government to save the people of New Zealand by a new land valuation and policy.—l am, etc., EQUITY.