THE PRICE OF LAND.

Taranaki Daily News, Volume LIV, Issue 301, 17 June 1912, Page 4

THE PRICE OF LAND.

In the course of bis interesting address to the Taranaki Chamber of Commerce on Friday evening, Mr. S. W. Shaw, the retiring president, expressed the opinion that by careful testing and culling of dairy herds, and by improved methods of farming, such as top-dressing of pastures and thorough and scientific cultivation, there is still room for a further rise in the value of Taranaki land. If. he continued, higher prices for land result in producing better methods of farming, it will not be an unmixed evil. High land prices is an evil, and a serious evil. And in no part of the Dominion is the evil so. apparent and its effect on the general community so destructive as in Taranaki. Acre for acre, there is no part of the Dominion which produees so much wealth as this province, and as a community no part should be more prosperous than we. But is this the case! There is no contesting the fact that the men who have taken up land at the high prices, ruling in Taranaki during the -past year or so have, in the great majority of cases, had very limited capital, and had as much as they could do to pay interest charges and living expenses without being able to spend money on improving their land or herds. "Intense cultivation" is very desirable and necessary if Taranaki is to progress, but if too much money is paid for the land in the first instance, and there is no cash in the exchequer, how can "intense cultivation" be practised? As a matter of fact, a large section of those who have paid, or nominally paid, high prices for land, are more concerned about turning the knd over at a profit than about improving either their land, methods or herds. The "old hand," the man who got his property at a reasonable rate, is rapidly quitting operations, and retiring, generally to other climes, on his rent or interest. He is the man who is in the position to improve the land and adopt better methods, and when he elects to stop in the district he is, generally speaking, actually working on these progressive lines and providing the money for the purchase of motor cars and other luxuries alluded to by Mr. Shaw. Mr. Shaw truly said the capacity for production is the real test of value, but the mistake made in Taranaki is that the price of the land is based on the results of one or two good seasons, and not on those over a given number of years; not taking properly into account the economic value of the labor rendered by the wife and children, nor the losses that occur in every milch herd. Again, the land is capitalised for every improvement made in connection with the industry. The milking machine is perfected; it minimises labor, save* the owner money—and promptly up goes the price of land in proportion. Testing weeds out the "robber" cows, the average return is increased—and up again goes the price of the land. So with the improvements effected in the manufacing and other ways. They are all capitalised and made an additional burden for the land to carry. Is this wise and in the interests of the community? We unhesitatingly say it is not. Then present land prices are baaed on money being procurable at five per cent. Sellers, in the great majority of cases, leave nearly all the money on mortgage at this figure. But what will be the position when these mortgages mature? It is a certainty that the mortgagor will be unable, if he still retains the land, to reduce his liability to any appreciable extent, for he has his "Herd to pay for, and must meet other obligations. The original owner of the property will not be disposed to renew the moitgage at the same

rate when the ruling rate may be six or six and a half per cent. The increase in the rate of interest, which is making itiself manifest in every direction just now, 'must .affeet the price of land, and if it brings the price more into harmony with the productive value of the land it will not be an unmixed evil. For just now there is no margin of safety, and should prices of our products drop a penny or two—-quite a likely contingency—ruination would overtake many in this province. Only with sound values obtaining can we have a general improvement in the working of the land and the dairy which is essential to the true progress and prosperity of this highly favored provi»ee.