FRIDAY, SEPTEMBER 7, 1923. BURDENS ON THE LAND.

Hawera & Normanby Star, Volume XLII, Issue XLII, 7 September 1923, Page 4

FRIDAY, SEPTEMBER 7, 1923. BURDENS ON THE LAND.

The Abstract of Statistics for August contains the returns of mortgages registered and discharged for the year ended July, and comparing the figures with those of the preceding year one finds, that the position has improved greatly.. Mortgages registered in the period August-July, 1922-23, numbered 36,385 of a value of £28,481,126. In the same period of 1921-22 the figures were: Number36,os9; amount £28,733,----886. Mortgages discharged were: 1922-23, number 23,249, amount £17,----542,492; 1921-22, number 18,283, amount £12,152,634. During the month of July, 1923, 3662 mortgages were registered, the amount being £3,043,- ■ 128, mortgages discharged during the month being 2524 of a value of £2,402,-' 519. If we go back to the figures for 1920-21 (September-August) we find that the position was very different. [ For the twelve months ended August, • ! 1921, the number of mortgages registered was 51,976 of a value of £54,064,-' 302, white those discharged were 30,713 of a value of £21,414,761. The 1920- j 21 period represented the peak of the inflation wave. The following year ( found the country in the grip of the depression, while the present may be regarded as that of financial reconstructioni on a sounder basis. The mortgages registered in the i_<eriod 1 August-July, 1922-23, showed a drop in value of £252,760 compared with the preceding year, while discharges showed an increase of £5,389,858 compared with the. year before. We think that these figures are an excellent indicatiou^that the country is returning to a sound financial condition, though, as everybody who has studied the position knows, it has still a long way to go before all the evil effects of the period of inflation have been overcome. The causes of many of the troubles of the people are well known now and most of us realise that cheap money in abnormal times may prove to be anything but a blessing. It led to far too much gambling and encouraged people to pay prices that were much too high. In South Taranaki we all know how rapid was the inflation and the loading oi the land with heavy mortgages. That there is no artificial means by which the problems can be solved can readilj be understood; *The products from thf land must pay for the cost of" tltf farms; in fact, in a country such as this where wealth is almost entirely de- . rived from the primary producing industries, it is to the- land that we musi look for the solution of the problems • which arose through the widespread effects of inflation and the wild gambling that became so general in spite of tht warnings of experts in financial mat ters. The value of farming lane should, of course, be proportionate, tc its producing capacity, and if, as ii the case in so many instances, farms have been overweighted with higl mortgages, it is obvious that the farm, ers must work harder and produce as much as possible from their lands be I fore they can remove the heavy loac which they are carrying. There are no doubt, many farmers in this distrid 1 who realise this. In July, 1923, ir Taranaki 184 mortgages of a value ol £183,336 were discharged, comparec with 92 mortgages valued at £177,140 discharged in July, 1922. The process will probably be a somewhat slow.one. and in many cases very difficult, bui with a prospect of good prices for produce and hopes that the new season will be a good one for production, w« may look forward to a continuance oi the improvement which has been noted. There is, it seems to us, a, danger at the present time that the numerous schemes that are being undertaken in various parts of the Dominion in the way of hafrbour development, electric power, and such undertakings may load the land too heavily in rating. We do not say that schemes which are for the progress and development of the Dominion should not be undertaken, but we do say that every possible care should be taken to see that the heavy cost— and big schemes cost much moneywill not place new burdens upon the land, either directly or indirectly. In other words, the great schemes to which we refer should be regarded strictly from the point of view of sound business and every ' factor concerning them should be carefully considered before they are undertaken. From the experiences &¥ farmers dur-

ing the past two or three years we think that they will agree that the land cannot carry any heavier burdens, and we hope that any danger there may be in this direction will be avoided. If by failure-to study the effect of rates and taxes upon producing land, farms become too heavily loaded, it will n:ake it very much more difficult for formers to find money for improvements necessary if production is to be increased, and, though some' people may not realise it, the future welfare of New.Zealand depends to a: great extent upon increased production. The average production of butter-fat is about 1801b per cow. There are some 1,300,000 dairy cows in the Dominion. If by better methods of farming and proper expenditure we could increase the. average production of butter-fat to, say, 2801b per cow—those closely connected with farming say that the 3001b mark should be aimed at—the increase in income to the Dominion would be some £10,000,000 to £12,000,000 a year. But it cannot be done if the land is to be heavily loaded with mortgages and rates. Every effort should be made to wipe off the mortgages as soon as possible, while at the same time every care should be taken that the land is not asked to bear heavier taxation.