THE PRICE OF FARM LANDS.

Franklin Times, Volume 9, Issue 643, 21 June 1921, Page 6

THE PRICE OF FARM LANDS.

During April and May the economic conditions in New Zealand were not unsatisfactory. Business has been fairly good and retailers in particular have not had any real cause for complaint. Farm lands were selling at ridicuously high prices, and at the Parliamentary Inquiry held recently it was stated that farm lands and especially dairy farms were not excessively priced' .»t £l5O to £2OO per acre, and of course sheep country was sold at relatively high prices. It is one of the difficult problems that the Government has to, face to see that the returned soldiers who were induced to take up high-priced land are not allowed to fall down. Then again on some of the dairy farms there are three and four mortgages. And how these are to be covered remains to be seen,. A Wairapapa settler does not entertain any very optimistic opinions with respect to farmers: He thinks that many farmers will be bankrupt during the next twelve months. Broad acres are worth only what can be produced on them by careful ordinary husbandry, and this valuation must be based not on the return of a single year, but on the returns of from five to seven years. If land values were fixed on this basis there would not be any fear for fanners, except those who are duffers at farming The re-adjustment of land values must come about when the moratorium expires. The Government has not begun to economise yet, and cannot very well justify any such action with a surplus of £6,000,000 and the subsidies in respect to butter and wheat growing. Economy in the Government administration is imperative for the country is carrying a tremendous load of debt which increases' each year in spite of the alleged sinking funds, which, like the reserve funds of many joint-stock companies, exist only on paper.