EXCESSIVE HOUSE RENTS.

Auckland Star, Volume XXXI, Issue 213, 7 September 1900, Page 2

EXCESSIVE HOUSE RENTS.

(To the Editor.)

Sir,—Tour correspondent, "Ad Valorem," asks if it is not time to get some of our honourable members to draft a "Pair ■Rent Bill." Now, Sir, I trust our members will have more sense than to attempt legislation'on any such lines, as it would tend to aggravate the evil, and poor people would find it more difficult to pixy the reduced rent, if said reduction be lowered by legal enactment. If a decline in the bank rate of discount takes place, it is caused by competition between the banks. If the rents from houses yield a higher rate of interest, after maintenance and sinking fund is written off, the property must be undervalued for some cause or other—possibly the fear of legislation. Should fenr of taxation bo the cause, we have already intensified the evil in having prevented the investment of capital in building new houses to supply the demand. Legislation may lower the capital value of houses and land, but it could not possibly help the poor to pay even a lesser rent. If we wish to benefit the poor we should allow every freedom in exchanging "values" of all sorts". High rents will then have a high capitalised value, and the owner of a house may find himself with money* enough to build another house to help increase the supply of houses, and consequently lower the rents without legislation. Legislation would create monopoly, and benefit the owner or rent receiver rather than the poor fellow who is struggling to pity the rent Open up new land and make communication cheap from places where land is dear, so that we can g-et away from Queen street wharf and the city. We then shall make the poor man prosperous, and if rents should remain high in the city it will be because we. all are well able to pay high rents. With free land within reach of a market, there is no better indication of general prosperity than high rents. Wages was a good indicator before otir labour legislation stepped in to create a monopoly by fixing the prices to be paid for services rendered. Legislation directed towards the fictitious raising of wages, or- the prices of products .exchanged for the wages paid.i can only result in "monopoly values" being raised The competition to gain the privilege of working, will surely increase exactly in proportion as legislation interferes with the free exchange of labour and labour products.—l am, etc., Customs-st. . A.^SANFORD

(To the Editor.)

■Sir,—lour correspondent "Ad Valorem" desires to have a "Fair Rent Bill" introduced into the House of Representatives for the purpose of lowering rents; but he is expecting too much from ah assembly composed chiefly of landlords. But he appears Ito forget that house rents are .ruled by sunply and demand, and if the 1 demand for houses is greater than the ■supply rents ; will so up; therefore, we can state the case shortly thus:- "That there are not enough houses to satisfy the demands of the community." yet there is plenty of timber In the mills and plenty of idle labour- therefore what is wanted before more houses can be built is more land. But-so Ion" as speculators are allowed to hold land idlY rents must rise, ana so loner as the holding of land Idle pays the speculator, land will be held idle by the speculator. Now. the easiest way to prevent land being hold idle is to tax it on its unimproved Value and under the "Rating on-Unimproved Values Act, 1800," the citizens of Auckland have the power to so levy their rates, and we would be very glad if "Ad Valorem" would help us to bring about this much-needed reform.—l am, etc., « .«• ir' ■ V-*1- M- KiNrj, ■ Hon. See. National Single Tax League Auckland, September 5. ; '."" '