INFLATION OF LAND VALUES

Evening Post, Volume XCIX, Issue 77, 31 March 1920, Page 5

INFLATION OF LAND VALUES

' A WARNING- TO FARMERS. (BY TELEGRAPH.—SPECIAL TO THE POST.) AUCKLAND, This Day. Mr. J. Barugh, Chairman of Directors of the Farmers' Co-Operative Auctioneering Company, voiced a warning to a meeting of shareholders at Hamilton on the danger of inflation of land, and the growing tendency of farmers to rely on securing very liberal financing in connection with their operations: "Dur- . ing the past year," said the speaker, "owing to the speculative demand for land, prices have jumped considerably, and in my opinion it is doubtful in many instances whether these high prices can be justified. Shipping difficulties and the uncertainty as to course of the markets abroad, will undoubtedly have the effect of restricted., rather than increased accommodation. The termination of the commandeer on 30th June next is expected to materially affect, the finance of the dominion. Under the commandeer I the Imperial Government paid for what it purchased, but in future we shall have to- finance our requirements in the old style, and the conditions, upon which 1 have previously remarked, are sure to result in the banks pursuing a very, conservative policy in making advances against produce. The burden which will be cast upon them will be a heavy one, and it therefore behoves everyone to put their finances on a sound footing, without delay, so as to minimise the effects I of any restrictive policy."