South Canterbury Times, FRIDAY, JUNE 3, 1881.

South Canterbury Times, Issue 2559, 3 June 1881, Page 2

South Canterbury Times, FRIDAY, JUNE 3, 1881.

The value of land is one of the best guides as to the prosperity of a country. It is true that in times of intense speculation, prices are apt to range far beyond the real value. Such was undoubtedly the case during the land mania of 1877 and 1878. Property had been rising for a few years previously, but it was in the two years mentioned that it reached the culculminating point. Then the re-action commenced, and up the middle of 1880 things looked tolerably gloomy tor those who had invested too freely. A panic had taken place, which in a great measure was unwarranted. However, it had its origin more outside than inside the colony. It was in a great degree the result of insufficient monetary accommodation, and only partly through the fall in value of the staple products of the colony. The year of 1879 was a time of great depression in the Mother Country, and indeed all over the globe. The civilized world has become one vast mart. That which affects the majority affects the whole. Rapid and regular means of communication render each more dependent on the other. Owing to particular circumstances New Zealand received a double stroke during the financial collapse of ’79. There has been little or no accumulation of capital in this colony, while at the same time there is an extensive and profitable field for its employment. Hence publicly and privately the

colony has had to borrow largely from outside. It is a well-known fact that the bulk of the capital of the banks doing business in New Zealand and also of the loan and investment companies is foreign, a large proportion being Scotch, It was Scotland which experienced the monetary panic in its most acute form. The failure of the City of Glasgow Bank had a most disastrous effect. It shook other monetary institutions to their foundation. The Bank itself bad a considerable sum invested in this colony, and so had the financial corporations affected by its fall. We need not recount the terrors of the period when the Banks put on the “ screw.” There are times when a Bank owes its fall to a panic on the part of the public, but in our case it was those institutions which were panic-stricken. Many a man who is “ safe ” trembles when he thinks of that period. The result was that £3,000,000 was withdrawn from the colony, and that at a time, too, when exceedingly low prices ruled for wool and grain. The withdrawal of such a large sum under the most favorable condition of the markets would not fail to sensibly depreciate the value of property. Yet what has been the result ? It is true that a number of shaky traders were weeded out, hut most of those who possessed anything at all weathered the storm, though here and there through undue pressure a hitherto well-to-do man has gone to the wall. One good result has followed the monetary strain. Overspeculation has been checked for many a year to come in New Zealand. A man will not now readily put out his hand farther than he can take it back. It is therefore the more rc-assur-ing to notice the substantial rise which has taken place in the value of landed property both rural and urban during the past twelve months. There is not much prospect of a sudden rise whereby fifty or a hundred per cent, clear profit may be obtained in a few months, as was the case during the great borrowing era, when the hanks were so ready to grant the accommodation which they afterwards called in with alarming suddenness. That which induces people to invest at the present is a steady faith in the growing prosperity of the colony, and that through increasing value they will get a fair return for their outlay. We are of opinion that the price of land at present does uot represent what it will fetch a short time hence. A striking instance of the rapid rise of town property is given in the “ New Zealand Land and Investment Circular,” published by Mackay, Bracken and Co., of Dunedin. We here desire to state that that firm has conferred a boon upon all classes of investors by the establishment of their “ Circular.” It affords, almost at a glance, the value of all kinds of property in the various parts of the colony, a thing unattainable before without reading a mass of newspapers, many of which are not available without a good deal of trouble. As the “ Circular” is published as a supplement to the“ Saturday Advertiser,” it will consequently circulate largely throughout the entire colony. This should induce auctioneers, estate, and commission agents to furnish the publishers with accounts of their more important transactions. As a notable example of the increasing value of property in the city of Dunedin we annex the following from the last number of the “ Circular ” :

The ice is broken. It is known that money is abundant and cheap, and that there are investors on the look out for a better bargain than in their opinion present prices offer. We were inclined to believe that prices were at their lowest, and that bo.’dcrs were not prepared to make further sacrifice. It only required some courageous individual to make an investment and the spell of dullness would be over. It so happened that a fine block of property in Princes Street, Dunedin,belonging to Mr Dunning, had been in the market for two years at £16,000. Nobody would look at it. It was ridiculously dear. Ten days ago Capt. Baldwin offered the price and secured it. Instantly it acquired a new value in the eyes of investors, and the judicious purchaser was offere i £2503 on his bargain. This he refused, as he expects the property to be worth at least £25,000. This transacion created quite a commotion. Other likely sections were eagerly enquired after. For one corner in Princes street £20,000 is wanted, and for another at Princes street and Rattery street the owners ask £60,000. For the old “Provincial” and theatre £16,000 was offered and refused. The “ Daily Times” Company sold their former premises, without an inch of back ground, in Bond street for £11,550. A few years ago they would have been considered to be dear at £6OOO, The desire for investment in Princes street has spread to George street, and several transactions at advanced prices have been the result. The same tale could be told of other cities in the colony. In Christchurch, a few days ago, there was a sale of suburban property, situate about a mile and a quarter from the city, and in by no means a favorite locality. Some of the allotments reached as high as the rate of £2OOO per acre. In the days of the speculative mania the property referred to would not have realised a higher figure. The price is the more remarkable on account of Christchurch not being cramped for building space. We notice that there is considerable activity in real property transactions in Auckland, but for some reason or other city, suburban, and country properties in the northern provincial district have never approached the values ruling in the South Island. Judging from natural advantages, the city of Auckland has a future before it second to no ether place in the colony. As far as town property is concerned, the whole gist of the matter is that all properties in the seaports are sure to rise enormously in value. We know of no place with a fair harbor and a productive back country in the whole of the Australasian Colonies where the value o town has depreciated for any .thened period. To come nearc ome. Timaru has behind it r immense quantity of fertile laud, and this port is the natura

outlet for the produce. All doubts have been removed as to the feasibility of forming an excellent harbor here. The works already constructed have been tested sufficiently to render the success of the harbor scheme certain. With such a bright prospect before them, holders of town and suburban properties should take heart of grace. Any depression which may henceforth take place will be of a fleeting nature, but the rise will be permanent and ever-increasing.

The following are the census returns for the undermentioned colonies, together with the increase since 1871 :

1871. 3881. Increase* New .South Wales . 503,900 . 750,800 . 2*16,000 New Zealand . 250,300 • 480,500 • 233,200 Victoria . . 731,500 . 855.500 . 124,000

South Australia • 180,000 . 277,500 . 91,500 Tasmania . . In the order of percentage increase the colonies are placed thus :—New Zealand, 90 per cent ; South Australia, 49 per cent; New South Wales, 48 per cent ; Victoria, 17 per cent ; Tasmania, 16 per cent. It will be seen that New Zealand has far outstripped the other colonies in the rate of progress, notwithstanding the depression during the last two years. It may be as well to mention, however, that since 1871 the Government of this colony has introduced 100,000 immigrants and borrowed over twenty millions sterling.