LAND VALUES

Press, Volume LXX, Issue 21084, 8 February 1934, Page 10

LAND VALUES

EFFECT ON DAIRYING ; FORMER MINISTER'S I'LAN TOR WRITING DOWN ' iTRr.SJ ASSOCIATION 1 K.I.K.U I! AM .! I STRATFORD, February 7. j An article in the "Stratford Post" by Mr J. B. Hine, a former Cabinet Minister, refers to the necessity of writing down land values if dairying is to continue on the land. "The dairy industry is in a much worse position now than it was in a year ago," he states. "An endeavour should be made to spread the loss so that neither the mortgagee nor mortgagor has to bear the whole. Therefore the State should carry out the necessary adjustments. In many instances the farmer's equity has disappeared, as well as part of the mortgagee's security." Mr Hine considers that the practical method of adjustment appears to be:— (1) For the Government to create a "land mortgage reduction fund" by the issue of debentures (say, for 10 years), at a low rate of interest, and to offer these to the mortgagees in amounts equal to the amount of the reduction of mortgage principal. (2) That a "reduction fund" should be provided for in the following manner: Every mortgagor who obtains a reduction of the capital sum of the mortgage owing by him should covenant to pay into a "redemption fund" a percentage to be fixed of any increase in the price of the primary products received by him over and above the prices ruling at the time of the revaluation, this lien to be in force for Ihc same period as the debentures. Such a provision would safeguard the "redemption fund" should an increase in j prices occur during the currency of the debentures. i