Inflated Land Values

Dominion, Volume 27, Issue 151, 23 March 1934, Page 13

Inflated Land Values

Sir.—Your correspondents, “Action" and “Stronger Action,” have put forward the only sensible suggestion of how to deal with the all-important question of mortgaged lands. Were the Government to have the courage which is sometimes unthinkingly attributed to it, it would take this step without hesitation. Common sense dictates that this course is the correct one to take in order to bring about a real, albeit a temporary, relief from the only charges which are operating against a return of temporary prosperity. As you are aware, I advocate still stronger action and making the mortgaging of land impossible, and the taxing of the individual and any form of industry unnecessary.

The clearing of the present mortgages would only pave the way for a further recrudescence of borrowing on land, which is what brought us to this impasse in which we now find ourselves. Land is only worth what it will produce. a fact which is recognised by everyone; further, it is impossible for people to find cash enough to pay outright for land; why, therefore, not obviate tlie mortgage system by making it possible for land to be taken up for all purposes at an annual rental, with full security of tenure? By tbe people resuming their undoubted right of ownership of all the land of the nation, such rental would go to the Treasury in the shape of revenue. In this way two birds would be killed with the one stone and the land become the property of the whole of the people instead of the property of a comparatively few.—l am. etc., E. W. NICOLAUS. Wellington, March 22, 1934.