THE LAND MANIA AND ITS FRUITS.

South Canterbury Times, Issue 2260, 15 June 1880, Page 3

THE LAND MANIA AND ITS FRUITS.

The following is an extract from a sensible article on Now Zealand, contributed by a visitor to this colony, which appeared in a recent issue of the “ Glasgow Herald ” : —The earth hunger or land mania, which raged with so much fury two years ago, in the purchase of land, thoroughly collapsed with the fall of the City of Glasgow Bank. It was greatly stimulated by the facilities and assistance furnished by the banks in Now Zealand. Nearly every small tradesman strained his credit to enable him to buy land, but after the gigantic failure in Glasgow the banks suddenly stopped alUulvances and violently strove to recall the large amounts outstanding, which they found it very difficult to obtain. Loud complaints arc heard all over the colony of the action of the hanks in having first stimulated speculation in land and then so suddenly checking it, besides unduly restricting legitimate discount business. The banks, in answer, plead poverty, winch they state as having been caused by large withdrawals of deposits, and the enormous sums locked up in mortgage, certainly not properly banking business. Many reckless speculators would now gladly quit their holdings at a sacrifice, but fail to find purchasers. Land has fallen in value, and is still falling, embarrassing those who bought beyond their means ; and individual cases of bankruptcy and ruin arc inevitable, giving grounds to the fear that a land crisis is yet to come. Sir Walter Scott said that a “ Scotchman no sooner got his head above water than he at once made for land.” But the New Zealander beats that—the deferred payment, system has led him into temptation, and he made for land when he was over head and ears in debt. Agricultural and pastoral land was forced up far beyond its value, £2O, and even £fi(J per aero being frequently paid for it. By reckoning capital as worth from 8 to 10 per cent, per annum, which may be readily obtained on mortgage, you have an equivalent sum for rent of £2 to £fi an acre, and at such a rent it is impossible to make land in New Zealand yield a profit. Labor to work it is twice as high as in England. There is not amarket for the produce in New Zealand, and freights Home to England arc very heavy. Taxes are increasing, and although there is the prospect of a splendid harvest, the farmers complain .of poor results. Oats arc selling in the neighborhood of Dunedin at Is fid per bushel, which will not pay the producer. one farmer told mo the other day that he lost £IOOO last year. A reaction in the value of land must therefore come, and that too, very quickly.