LAND FOR SETTLEMENT.

Hawera Star, Volume XLIX, 16 August 1929, Page 9

LAND FOR SETTLEMENT.

A FINANCIAL PROBLEM. INTEREST RATES AND PRICES. (Bv Telegraph -Press Association.) DUNEDIN, Aug. 16. In the course of an address to the Farmers’ Union, Mr. James Begg stated that money for land purchase or lor lifting, or replacing mortgages was absolutely sterile, but money tor improvement of production would be ot immense benefit The activities of the Advances to Settlers Department had at first- acted as a stimulant, but the effect had long .passed and the Act was not now benefiting the farming industry, though it had encircled many thousands of individuals. New settlement to-day was move difficult than at any previous time, and high land prices more than offset the reduction of interest. There was almost a constant relation between interest rates and land prices, and even it the Government could, lend to farmers at 2J per cent, the benefits would disappear in increased land prices, so that new settlement- became impossible because of the large amount- of money new settlement would require. Dealing also with such concessions as free railage on lime, Mr. Begg said that these were really gifts sold at full market value, being included in the purchase price.