Assistance to Farmers

Dominion, Volume 26, Issue 163, 5 April 1933, Page 11

Assistance to Farmers

Sir, —Mr. A. D. McLeod clouds the issue, which is that “the farmer is receiving public funds in order to keep him going and to bolster up high land values,” which one plainly sees are the ruination of farmers, and, therefore of all citizens.

Looking at the question from a purely disinterested point of view, the farmer is merely an ordinary citizen of this country and is accordingly not entitled to assistance any more than any other citizen. He has decided to engage in farming as against accountancy, let us say, and his little bit of capital has gone into the land or in other words, into part payment of a permit to produce. That in itself is a great wrong to the farmer, as the price he had to pay for that permit was greater than the return he could get on the day he bought; and a primary wrong, because no one should have to pay his fellowman for a right to labour ... Mr. McLeod asumes that rural lands have dropped all their unimproved value, but that is not so, as any number of farmers are continuing to pay interest on mortgage. In my calculations, I have written off £2OO million from the Government valuation of 1929, leaving £l4O million unimproved value throughout the Dominion in town and country lands. At 5 per cent, that would give a return to the Treasury of £7 million. Disregarding payment of interest on national and local body debt—which is really reflected in unimproved land value —that amount, if all costs and values were written down in an equal ratio, and all goods allowed free into the country, would amply suffice for revenue. Mr McLeod rightly states that all wealth comes from the land, but the ultimate value is not put into that wealth by merely extracting it from the land. Every exchange it goes through, transport, manufacturing, retail, and wholesale service—adds value, and those who add that value are rightly entitled to wages. From that fact is deducted, the other fact, that all revenue must be drawn indirectly from the land .. . Therefore, in a short time the'Government’s revenue will actually represent the worth of the land. Everyone, Government included, will then be forced to write off the values which no longer exist and wages and salaries will find a higher proportional level. In conclusion, may I ask Mr. McLeod, who would first benefit through land being brought down to its true economic value and all excess value 1 written off? Mould the farmer be a gainer if,, instead of payin" all his capital down for permission to work land, he only had to pay half a year’s economic rent in advance and be able to acquire his own earning capital in stock, etc., without having to mortgage his labour for years ahead and to want ofra rise in produce prices before he made what are termed wages and interest onhis capital?-! am s et.e. kicoLAus> Wellington. April 2.

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