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Hokitika Guardian, 25 September 1926, Page 2

■ With the opening series of won] sales in London, the period of low prices and unstable markets for our primary products shows a. definite step in the right direction—enhanced prices. There was a confident tone at the opening sale, and advances up to 10 per cent, recorded in cross-breds, Continental buyers operating largely for these wools. With an improved tone and keen buying at the Loudon market it seems quite probable that Dominion sales will record an advance in prices also. An advance of one penny per lb. means approximately a million pounds in the pockets of Yew Zealand wool growers, and the 10 per cent, rise recorded is. on an average, in excess of this amount. Last year’s prices brought two and a half million pounds above that of the previous “slump” period, and, although there is no hope of “boom” prices returning, wool-grow-ers lice every reason to be satisfied with the favourable increase in nrices portended. It lias been a verv favourable season, and tile clip will most ! likelv he a heavier one than last season’s. with a corresponding excess total of payments at the increased prices, which should help to wipe' off the slate the adverse trade balance of last year. In its Federal Capital Territory o r nearly a thousand square miles, the Australian Commonwealth is making a creat experiment in land tenure, which establishes a fertile source of future revenue, while not preventing the receipt of very substantial present sums in cash. Tn the capital torrttorv no freehold can lie bought. All the land is held on nerpetnal lease, the rental being five per cent, on the assessed capital unimproved value of the land. The first valuation will stand for 20 years, after which

the values will be reassessed at intervals of ten years. It is therefore eloquent testimony to the belief of Australians in the future of their capital city that as much as £15,000 has been paid already at auction for the perpetual lease of a single site, subject to a rental of 5 per cent, on its present and future value to whatever that may rise. The fact that large sums of money are being paid for business and residential sites in various parts of Canberra, is proof of confident expectation that they will become much more valuable during the first twenty years, for which the rent will remain constant whatever value the site may attain. During that period the owner will keep for himself any unearned increment over and above that capitalised in the price paid for the lease. AH. that, with reappraisement, the unearned increment will bring increased rentals to the State. The effect- of this policy is that the great sums of money expended on laying out Canberra, beau tifying it, and erecting public buildings there are, in fact, invested lather than spent. Part of the money is returned in cash where leases are sold, and in years to come, as population grows, the rents received from occupant's of Federal lands will return the rest with interest, and make Canberra a commercial asset of the Commonwealth, as well as a capital city of which it may be proud. Those responsible for this far-sighted land policy deserve the thanks of the Commonwealth.