“HISTORY' REPEATS ITSELF”

Bay of Plenty Times, Volume LXXI, Issue 13228, 19 August 1943, Page 6

“HISTORY' REPEATS ITSELF”

RISING VALUES OF LAND

VIEWS OF FARMERS' UNION OFFICIAL

“History is repeating itself with regard to the country being made a whipping boy for the town, on account of the crime of rising values of land.” writes Mr A. E. Robinson, Provincial Secretary of the Auckland Farmers’ Union. “Money values have been in the melting pot since last war. All that is built on values derived from animal husbandry appears to be greatly increased in price. There was much talk of high farm prices after the last war. When such a question as land values becomes a political shuttlecock, when all arguments are from the particular to the general, when conversations commence with, ‘I know a farm . . .

facts are mislaid. The post-war poli-

tical opposition made much,of certain sales of estates at high prices. Later, high price of dairy produce led to speculation and many mortgages had to be liquidated subsequently. Later still, when politicians were looking into every cranny for the cause of the slump—which, be it remembered, was at first to be cured by more production and then by less, production, quotas —rural land values had their place in the long line of exhibits.

“Despite vast increases in animal population Government capital valuations of counties in 1921 and 1942 were the same, each was £3 22 millions: valuation of boroughs rose from £179 millions in 1921 to £321 millions in 19 40.

“As to values in recent years, in June, ‘Abstracts of Statistics’ will be found particulars of land transfers for five months in years 1939-1943, and in September, 193 6, ‘Abstracts’ there are similar particulars for five months of the years 1935 and 19 36. There were 5397 Town and Suburban transfers, 1935, averaging £423 consideration; 6897 in 1936, averaging £ 446; 9623 in 1939, averaging £ 589, and 10,295 in 1943, averaging £ 8 23—each in a five months’ period; roughly double as many at double the consideration per transaction in 1934, compared with 1935. In 1935 there were 2271 rural land transfers .averaging £ 13 34 each; in 1936, 2622, averaging £ 1354: in 1939, 1974, averaging £ 14 61, and in 1943, 1936, averaging £1561. About 14 per cent, fewer transactions in rural land took place in 5 months in 1943 than in 5 months in 193 5; value per transaction rose 17 per cent over the eight-year period. There were fewer transactions in rural land in 1943 than in a similar period (January to May) in 1939, though there was 7 per cent, more consideration on the average. Land improvements Justify higher prices more particularly when these are accompanied by higher carrying capacity, but there has also to be considered the drop in general purchasing power of money that has affected prices of almost all else but rural land. The pound of 1921 bought much more than the £ 1 in 1943.”