LAND VALUE STANDARDISATION

Evening Star, Issue 19326, 12 August 1926, Page 9

LAND VALUE STANDARDISATION

The first point discussed is how to create confidence in land investments, the Commission declaring that the standardisation of land values is important, and that the basis of all satisfactory rural co-operative credit systems is the ascertained productive value of land. “The effect of adopting this principle has been to establish a check upon land speculation; and, whilst not depreciating values, has prevented sharp disturbances of values in those countries whore, conditions being normal, co-operative rural credit is largely used. The mast desirable means of relieving congestion in the cities is the provision of homos on the land for landless people. Unfortunately farming does not make a sufficiently strong appeal. The benefits are not always commensurate with the risks and disadvantages. ' Capital is necessary, and the return from the capital is not large. Quantity and quality of crops are affected by accidents* of harvest, disease, pests, weather, etc., which are entirely beyond the control of the farmer. Live stock is liable to accidents and losses from disease and other causes, against which insurances are effected on the Continent and in America. . The need is for a method which will not encourage speculation jn land, but one which will make farming more attractive to those who aro eager to work.

No better plan has presented itself to the Commission than a soundly administered system of rural mortgage, which provides capital for development of a farm at reasonable rates for a long term, with amortisation provisions. The acceptance of this system all over the world has been a most valuable factor in the closer settlement of land. It has reduced the charges for interest, given security to both mortgagor and mortgagee, and by its tendency to stabilise land values has diminished land speculation.