Truth

NZ Truth, Issue 1183, 2 August 1928, Page 6

Truth

_ THE 3~_SOIP!L-SS PAPER^ THURSDAY, AUGUST 2, 1928. Ways and Means ■. ' ■-■ . ~~+~ — r — ' '' ' -. ■ A VERY old-fashioned, if not altogether approved, method of doing business is to write up one's assets, insure them for their full insurable value, and leave the electric iron on. This method is, with the exception of the electric iron, nearly as old as insurance itself. Before the days of the electric iron there was gas ; before , that the overturned lamp; befpre that the wax match, and before that something no doubt almost as efficient. Another method of finance is also well known — based on a "writing up of assets. According to this method, money is borrowed up to the full borrowing capacity of the inflated assets and the lender is left with the "baby." This method is more subtle, if nor, more honest, than the former, but is not, by the elect, generally approved. However, when a Government writes up its assets it starts a newspaper wave of alleged "confidence." -• A wave of confidence is. started with borrowed money, by. advertising, m a business press, by, utilizing to the fullest capacity firms who specialize m advertising for a consideration, by knighting managers of banks, and other gentlemen who should know, but do not tell. The application of these methods to the administration of New Zealand can be seen from the following data. Between 1919 and 1925, the capital value of land and improvements m this Dominion has increased from £445,553,445 to £587,349,375. During the same time the Public Debt has increased by £90,000,000. Does not this look like writing up our assets for borrowing purposes? During the same time We have experienced the most urgent financial stringency the country has known for 40 years. During this time it was flagrantly assert-' ed by the Conservative Government that Taxation was being reduced (as if the total weight of taxation could fall with increasing valuation.) During this time, the iniquitous Soldier settlement schemes were hatched, and the Conservative supporters reaped rich harvests. All these things happened behind the screen ot fictitious, valuation. . " . The whole fabric of sound national finance is rooted m sound and true valuation of all land. A complete revaluation of every acre of land m New Zealand by. a body of competent honest Valuers who will compute the value of the land, on its productivity is required/ When this is doiie, the rest will be easy.