LAND VALUES.

Hauraki Plains Gazette, Volume XXXV, Issue 4761, 8 October 1924, Page 3

LAND VALUES.

PRESENT POLICY CRITICISED. SUGGESTIONS FOR IMPROVEMENT. In a recent article the Mercantile Gazette appealed for the stabilisation, of land values, on a sound basis, calculated on what the land is capable of producing. The Gazette points out that the producers have to carry the whole burden of the public and private indebtedness, and that there is ample money in the Dominion available to assist farming enterprise if the Government will alter its policy. It sees no reason why share investments should be considered superior to good mortgages, if the Government would encourage those who are prepared to assist the farming industry with capital. The Wellington journal goes'on to say: ‘‘At present the income tax works exactly the other way, and for so long as it remains the country will be unable to otbain that supply of money which is absolutely necessary to its well being, and it should be a good policy for the Government to make some sacrifice to bring about greater elasticity in farmers’ finance. Those who are called upon to pay the maximum income tax are in a better position to assist than aie those who claim total exemption. The wealthy man has money to lend, but he cannot economically invest in a six per cent, mortgage under present conditions, as if the Government takes twenty-five per cent he would have a return of four and a half only, and he can do better. We put forward a suggestion that persons lending on agricultural mortgages at five per cent, or less should not be called upon to pay income tax. If the Government were to exempt such mortgages we are quite certain that money would flow into the Dominion from outside quarters and there would be large sums offering from local sources. We think that the farming section of the community would benefit immediately, as money would be in full supply for mortgage, and at a cheap rate. We are also sure that the Treasury would not be much affected, as the loss would soqn be made up by the increased prosperity which would follow if bur farmers could obtain the money they require at a low rate, and such prosperity would be reflected by the increased assessments issued from the Tax Commissioner’s Office, and by the greater volume of goods which the country would require from overseas.”