A GAMBLE IN LAND.

Taranaki Daily News, 3 April 1920, Page 3

A GAMBLE IN LAND.

(Auckland Star). It should be impossible to view without concern such prices as were obtained at a land sale at Feilding recently. Several sections of a block of rich dairying land were sold at prices well over £IOO per acre, the highest figure being £l7", and the average £ll4. The land is an exceptionally rich "pocket" of dairying country, and we presume that at least some of the buyers were experienced farmers who went into the business with their eyes open. Bui these considerations do not seem to us to justify such figures. Taking a. long view oi prices of primary products, have men who fake up land at £l5O or £l7O an acre a reasonable prospect of paying their way! We doubt it. We fear that one of two motives are behind such purchases; either the intention of selling again at a substantial profit, or reliance on export prices being maintained at their present level or going to a higher one. It may seem absurd to suggest that, men would speculate at such figures, but we know of a case in Taranaki where dairying land was bought for £l5O an acre and resold shortly afterwards for £IBO- Speculation in farm land is going on all over the country, resulting in under-production and dangerous inflation of values. As to the future of prices, about nothing perhaps is it so difficult, to make a forecast, but surely it is well to be on ihe safe side. It seems to us that to buy land at a figure, that will pay only if prices do not fall is a gamble.' It is a form of gambling that is being widely practised, and if prices fall appreciably the consequences may be disastrous. We admit that a remedy is not easy to find, but we suggest that. Parliament, might give it? best attention to the whole problem of inflated land vnlnes and speculation. The person we would like to see taxed heavily is not so much the one who buys at. such prices as the one who sells, particularly if he has previously bought, as itpure speculation and has not improved the land. It would be interesting to know, by the way, what is the Government valuation of this block near Feilding. The Government itself, by its policy of buying so much improved land for soldiers at high rates, is partly responsible for the fact that values are soaring.