WELLINGTON NEWS

Hokitika Guardian, 6 March 1928, Page 4

WELLINGTON NEWS

LAND VALUES. (Special to “ Guardian WELLINGTON, .March 2. A little light is thrown upon land values hy the controversy between Mr E. A. Hansom, At.I 1 ., anti the lion. .V. I). .McLeod, Minister lor Lands. It appears that Air Hansom offered his property in .March, 1 920, consisting of (in') acres tt) the Government at Lid per acre, while the Government value at the time was CIS Ids per acre. Air Hansom subsequently re-oll'ered the jtroperty at £3d per acre, hut purchases for soldier settlements had ceased. The interesting feature is not that Air Hansom had offered his property to the State lor soldier settlements, hut that Air Hansom’s projierty and other properties should have been oflered anti in some cases sold to the Government al absurdly high prices, facts recoutIv available show that one property was purchased by the Government al C.'ili per acre for 2000 acres, the Government “ roll " price at the time being CIIO Ills per acre. When one considers these inflated values it is not surprising to find that farm lands sirs still depressed, notwithstanding the heavy writing down in values. Sir Harold Beauchamp in his capacity as Chairman of the Equitable Building Society of Wellington, stated tit the annual meeting tlmt certain farm lands on which the Company had made advances and which had been valued for mortgage purposes hy alleged experts, had heeli thrown up hy the mortgagors because they could not pay their way owing to the falling prices. The country is paying for this " mid-summer madness ” of Hit!) and 1920-21, the period when land values were inflated. By what system the Government valuers assessed the values of some of these farm properties is difficult to understand, hut the Government borrowed and squandered millions in respect to this same land. What has been written off is dead loss to the country, and the money might just as well have boon thrown into the sea for all the good it has been to the taxpayers. No one was punished for this egregious blunder. The experts still revelled in the name of experts, and some of them were called upon to mak i e-va Illations to their profit. The experience of that period threw the country hack, and farm lands to-day are not considered gootl buying except at a low figure, and certainly not a good asset for mortgage. Land is still assessed at a fancy price for £.'25 and CIIO per acre for two-sheep country is still being asked, hut the prospective fanner is not quite the fool he is thought to lie. We have entered on a period of falling prices, and although produce will in some seasons advance, the general tendency will be for prices to full. The purchasing power of the farmer is still below normal and be cannot properly in most cases meet bis obligations. What is the use of expecting closer settlement on fancy values Those who take up land at high values can never make it pay, and disgruntled fanners will he found everywhere. In their elforts to help the farmer to recover something from his high-priced land the Government is supplying him with Hural Credit and Intermediate Hural Credit, which looks very much like throwing good money alter had. The advances to he made under these schemes will he generous ; that is to say they will he more than the security is 'worth, and the loss will fall on the taxpayers. 'I here is some scheme to issue debentures to the public on the amount of the advances made hy the Rural Credits Department, but tnese debentures are not likely to be taken up because the security at the back of them is faulty, and the State is not responsible. Me are getting deeper into the mire because our dealings with first principles is wrong.