LAND VALUES.

Taranaki Daily News, 17 December 1919, Page 5

LAND VALUES.

A WARNING NOTE. Wellington, Friday. In the course of his address to the half-yearly meeting of the Bank of New Zealand to-day, Mr. J. H. Upton, acting chairman of directors, said:— The conditions of industry and trade throughout, the Dominion remains for the most part satisfactory. All the primary industries are thriving and prices for products are good. A rather severe drought in portions of the North during the autumn and winter, and an excess of moisture in parts of the South, resulted in a scarcity of feed, and as a consequence, some losses of stock occurred, and stock in those districts generally have come through the winter in poor' condition. Lambing, as a result, is expected to be below the average. In Canterbury, severe snowstorms during the winter months are known to have resulted in serious stock losses, the full extent of which will not be ascertainable until mustering and shearing are complete. Notwithstanding these drawbacks, however, the pastoral industry, owing to the good prices obtained under the Government purchase, is prosperous, arl most of those engaged in it are doing we'll.

Dairying is.also prosperous. Climatic conditions in the dairying districts both last season and this (so far as it has gone) have been favorable; and prices being also satisfactory, those engaged in the industry have thriven.

Speaking generally, evidences of prosperity are to be found everywhere. The people apparently have plenty of money to spend, and arc spending it freely. Wholesale and retail traders admit that they are'doing exceptionally well and making good profits.

One cannot but be struck by the contrast between the conditions prevailing here, and those in a large, part of the civilised world, which has been devastated by the greatest war of history, and where the populations of those stricken lands are absolutely destitute, and on the verge of starvation; and the thought not unnaturally arises to ask whether our happy condition can be regarded as sound and likely to be lasting. Sound it certainly is, and will be, so long as the country continues to produce to her utmost capacity; and lasting it will be, if our resources of every kind are developed with energy and intelligence, so'as adequately to be prepared to meet whatever contingencies may arise.

One result of our prosperity—and a result which I cannot but regard otherwise than, as unfortunate—is an accentuated upward movement in the price of land. Jn some districts land is changing bonds at prices that, immediately before the war, would have been regarded as reckless. A note of warning was sounded in the last address from this chair; and we feel it our duty to repent and I emphasise it. Clearly, some agriculturists and pastoralists are basing their calculations on a continuance of the'present high prices for produce, or a possible further improvement therein. Wo cannot but regard this as too optimistic. Operators should not close their eyes to the possibility, or even the probability, of a fall, and should so restrict their liabilities that they will not be seriously bumpered should a fall in prices, and a- corresponding shrinkage in land values take place. A most important question is that of freight facilities after the Govrrmnent purchase ends. Owing to the shortage of

insulated ships, it would seem necessary that parly stops should be taken with a view to ensuring that the necessary amount of insulated splice shall he available to carry, our exports to market otherwise our producers will be in a very unenviable position. One Freezing Company has been so

impressed with the prospective difficulties of the position that it has made the experiment of purchasing a steamer, which it proposes to insulate and utilise to relieve the pressure, so far as its own particular works are concerned. She will also carry wool or other produce in her non-insulated space. The results of this experiment will, no doubt, be watched with interest by other meat freezing companies. * What the course of prices will be after the cessation of Government purchase is largely a matter of conjecture. -SBme lines, owing to scarcity of supplies, may temporarily advance, and others recede. But whatever the immediate result may be, producers will do well to keep in view the probability of an ultimate recession in prices, and' base their business calculations accordingly.