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Hokitika Guardian, 15 September 1927, Page 2

The Minister of Lands is very pessimistic about the residue of the Crown estate so far as further land for settlement is concerned. Yet the remarkable fact remains that the Minister is without initiative to make any use at all of the idle acres. If lie accepts the estimate of his advisers, and believes the land of no value, why hedge round its use with special conditions and rentals. A policy of giving up the use of the land on long lease at. nominal rentals to bonafide settlers, would result in much of the land being brought into profit. Once in use, the land would begin to assume some value, and the country would begin to grow better off. There is also the socalled deterioration of the land to be considered, but in spite of all complaints, as a North Island paper points out. production is increasing, in spite of a certain amount of land deteriora- • tion in the last few years. The Dominion’s flocks continue to. increase and {he output of dairy produce to

grow,—the two largest sources o f wealth While this is so the fact that a proportion of farmers have had to abandon their farms to the mortgagees, while hard upon individuals, i,s not a matter of very grave national concern. It is a -matter of adjustment and writing off some of the fictitious value that was given to land in the boom years, and it will lead to a much .sounder position The adjustment of land values would he of the greatest import to farming and settlement. One of the drawback's to progress at this juncture is the effect of high land purchases during the boom period. This question lias been studied by (be economists, and in regard to farming and wages one of the professors holds that neither tiie increased cost of production, nor the rise in wages, nor the failure of wages to fall with the fall in prices, caii account for the relatively small average net returns secured hy the farmer during the post-war period. The outstanding factors that must he taken chiefly into account arc the in(lated prices at which much rural laud has changed hands since the war, and the heavy interest charges due to mortgagees As these are the primary causes of the agricultural and pastoral depression, those who demand a reduction in wages as n cure ffir “had times'’ in the primary industries, are losing sight of the real question issue Unless and until effective means can he devised to counteract “the over-valuation and over-mortgaging of land,” the farmer can expect little relief. The basic effect of high land values is therefore far-reaching and indicates that something should lie done to combat such an untoward circumstance. The Crown Estate is a very offensive one, and it would mean much to the national prosperity if more of it were in use. Some encouragement in that direction would help to meet the demand for land, and thereby assist to level prices, encouraging more settlement generally. Tl would he opportune to move now because dairy products arc likely to linn in value, and there would lie more encouragement to take up land if the terms were enticing. Land for settlement is a most essential need counting for national progress.