BURDEN ON LAND.

Manawatu Herald, Volume XLI, Issue 2031, 20 September 1919, Page 4

BURDEN ON LAND.

MEETING THE AVAR COSTS,

POSITION OF THE WORKERS

COMMENTS UPON LAND

VALUES,

An interesting review of the financial position* in New ZenlfUid as created hy the war, as he compared the burden placed upon the land with that which'other sections have had to bear, was made by Sir .James Wilson in bis opening address at the Farmers' Conference at Wellington on Tuesday. He staled that from a financial point of view the ‘’Kaiser’s bill of war" would have cost New Zealand over £80,000,000, which, added to the national debt, would bring the total indebtedness of .the Dominion to something like £170,000,000. Interest charges had to be-met, besides the cost of pensions and allowances—in all, those would total about eight millions sterling. As against the total debt New Zealand had a sunn of accumulated surpluses in London, of short-dated investments, of some lifleen millions

sterling, and a very problematical amount from the indemnity from Germany. In direct luxation since the war began no’’less a sum than twenty millions had been levied by way of land and income lax; Iwo millions more than was collected through the. Customs. Besides this, there was local taxation —no less a sum than £12.639,():& tor the last live years they had a record of —and deaih duties largely payable by land accounted for £3.395,884 for the same period. Land had to Lee]) up the roads, bridges, streets, and cun(ribtile largely !■> harbours and hospitals. LOCKING TO THE LAND. . “Much wealth- has been dissipated in our light to win the war.” be said, “and it is P> the bind that we mast look to create more wealth to replace (bat which during the war has gone up in smoke. We have been a fortunate .country, however, for the produce we grew was wanted hy the Allies, and arrangemenls were made to purchase on the spat this produce, and pay nearly a!! charges. Something like a hundred millions sterling was paid in this way, to be very soon divided up, first hy supplying Government with over seventy millions by way of loan to carry on.the war. We have seen that by way of Jpnd and income lax twenty millions were banded over to the Government as revenue. A very considerable portion of the balance went to the workers, for the deposits in Iho Savings Bank have increased enormously, and, despite I lie high cost of living, tine is glad to see that

tho thrifty ones have been accumulating capita!.

SAVINGS BANK RETURNS

‘*U|i to 1D33 the increased deposits over withdrawals ran from £400,000 to £BOO,OOO per ahmum. The lirst year of the war they jumped up to two millions: 1,01,0, to over three millions; 3.910, lliree ami alialf millions; the same in 1917; and in .191.8, over'four millions; and the Mare]) (pmrter of this year adds another million to the credit of deposits daring the war, and up to 31s( March last were £37,323,730, just doubling the deposits in live and a-oimrtcr yea]'-. If we note, too, that the Customs duties have not ‘been changed, and the addition this year is entirely owing to the increased original cos) of imported articles, and that direct taxation has increased live-fold, it must he acknowledged that Sir Joseph Ward was correct when he said that in Xew Zealand the worker paid less in taxation than any other country, and has been able, to save a very large amoiin.t during the war vears. ■ CAPITAL AND LABOUR. “It is not our province to discuss the general (pies!ion of the relation of Capital and Labour, although in the end the farmer has to bear the cost of the disputes which occur from time to time; but I think wore it: not for the grievance-mongers, the worker would admit he has not done so badly out of the war. The, expenditure has been enormous, and we have been spending our capital freely, and most of it has circulated through the workers’ hands. Ali the securities we have in New Zealand have been pledged to pay the debt incurred by the war. Ultimately, although the.face value may be diffe&nl, that security rests on the land. Critics who urge more land taxation point to the increased unimproved value as shown by statistical tables. Yet we have pledged far more than any increase to sc- ’ cure the debt created, VAULATION OP LAND.

“It would'take 100 long for me to go fully into the question of the valuation of land, hut I entirely dis-!-.cnl from the statement that the increase shown by tables lias been given the land by the community. It has almost all been created by the industry of (he farmer, aided by science and the withholding of the value of improvement in valuing the land. Everyone who Ims land knows | that an arbitrary value absurdly called the ‘unimproved’ value is placed upon land, with no relation to the returns whatever. To this llugyaincr adds a sum for improvements, and these are gradually ht each valuation absorbed into ‘unimproved value.’ In passing, I might add one word as to those paper valuer and returns. Fortunately in Mew Zealand a great majority of those farming as an occupation have a real love for the soil they work, they have no desire to be tempted by speculators —who make a living by buying and selling laud —to sell out.

. ‘‘On paper their land may be •valued- highly, bat when they charge Interest on their capital invested,

and a reasonable sum for their own labour and management, and the labour, rates, and taxes, very few make any real profit such as a business inan looks for, And when it is said that the farmer’s land has increased by so many millions, lie does not make any more profit. Suppose Ihe paper value says the land has increased £40,000,000 live per cent, would mean that Hie farmer should have an increased income of £2,000,000 per annum. It is very doubtful if be does. 1 firmly believe that any increase is more than shallowed up in expenses. In wages alone for workers on (he land (here has been an increase of a very large sum. According to the statistics of New Zealand there are 94,805 males and 32,313 females under the heading of employees. Even calculating that the 94,000 males have had a rise of 10s per week, this alone would amount to over.(wo millions sterling per annum. fact is (hat ill-digested figures are most misleading.”