The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, SEPTEMBER 29, 1928. MUNICIPAL RATING.

Hokitika Guardian, 29 September 1928, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, SEPTEMBER 29, 1928. MUNICIPAL RATING.

The rating valuation of any territory is always the subject of critical comment by the ratepayers. In these times, when so many local bodies are plunging in regard to borrowing for civic purposes of all kinds, and particularly for better roads, special rates have to be faced. At such time the ordinary rate is likely to be the least oppressive of the sums collected. But the levying of extra rates for loan purposes places a heavy impost on the rateable valuation, and ratepayers m many small boroughs particularly, are finding the load a heavy one. High rates in such instances, are not good for marketing properties, because the annual rate is a factor in ultimate cost which has to he taken into account. Property often seriously deteriorated in value because of the heavy rates imposed on sections. There are special cases in this town where the annual rates are higher than the cost at which j.he property last changed hands. This is a hardship, both to the past and present occupier, though it may he inferred the buyer realised that there was some reason why the

property was on the market so cheaply. In the borough of Otaki in the North Island, where there are farming 1 lands within the area, the rating taxa- | tion proved to be a serious handicap i to values and in the end Government J was moved to set up a Commission to enquire into the matter, and it is understood legislation will be passed this session to give effect to the report, so , that the land owners will be able to receive some measure of redress. Local bodies, excepting in the case of annual valuations, are in the hands of the Government Department. Some boroughs, including two of the cities, still adhere to the annual valuations which on 1 the face of it are the most equitable, because values are reviewed yearly and based on the letting value o,f the property. The Dunedin Municipal Council is flourishing, and according to the Town Clerk, the city owes its good fortune to the fairness of its valuations. For capital or unimproved value purposes, the Government is responsible, and is so pressed with work that it is not possible to revise its valuations excepting at very long intervals. Ross Borough, for instance, has not been valued since 1902, nor Kumara s»noe 1904. Hokitika was last valued in 1925. The Westland County was partially revalued in 1922. With regard to the peculiar position of Otaki, the Commission has reported, not geneally but specifically, suggesting an artificial basis of rating he adopted for the borough in the followng ratio: A. class TOO; B. class 85; C. class 70. That is to say for every £IOO of value in A. class, B. class would be taken on a basis of £BS on land of equal unimproved value and C. class’. £7O on land of equal unimproved value. This basis of levy is not intended to be universal, and if any other centre has like troubles, they should he separately investigated. Some boroughs are finding the unimproved value system irksome in those days of slump, and as far as Hokitika is concerned, it cannot he said that the unimproved rating system has brought about the advantages claimed for it. Recently Wanganui was glad apparently to throw off improved rating which was crippling the value of property because of the high rates imposed. There is not much heard in the County of Westland now as regards a demand for rating on unimproved values and judging by the experience in the l North Island, the settlers of this district are wise to restrain the agitation which was once in the air. Rating plays a very considerable part now in civic prosperity and at Home it has been found necessary to give industrial relief in regard to rating to assist unemployment. High rates are certainly burdensome and retard progress. On that account this district appears fortunate that it has not serious rating difficulties to menace the advancement which is now beginning to overtake the place. ,

Although in the past two issues special reference has teen made to the monetary policy of the United States, the policy of Great Britain is, after all I our more immediate concern. New Zealand at the same time has done and is doing its bit to support prosperity iii the United States by buying motor cars and motor spirit annually t„o considerable value. The orgy of spending under those heads in “the past, however, had its lesson, and there is a fresh perspective now in regard to general trading. The slogan of “Buy Within the Empire” has had a fair measure of support, and the effect of the trading within the Empire has helped all parts. The monetary policy of Great Britain is shaped by the Bank of England which has stood the stress and strain of the war and its aftermath with wonderful results. The Bank of England has husbanded the financial resources of the nation with wonderful results, and at this present Britain is fast recovering her industrial .supremacy. A more liberal policy of credit expansion is being advocated at Home, but production is not everything, there must be the market. Until that uncertainty is satisfied it would be reckless to- provide money to build up trade if the markets were lacking. The Bank of England has a large say also in the financial fortunes of the European banks, and is able to dictate a certain degree of policy also in that quarter. All that has been accomplished in Europe in the way of rehabilitation of currencies has been based on gold. France is the latest to “poll through,” and her financial position is becoming brighter rapidly. A freer spending policy has been urged at Home as a means to cope with the demands for employment but merely spending money to create work without the objective of real production and progress would be a serious waste. That is recognised in this country where relief works have been established but under such limitations that as soon as the labour market is normal and wages back to current rates the relief (which is merely a temporary palliative) must cease. Works of this nature do not create wealth in the shape of commodities for export to bring hack outside gold which would be new money available for national use through a well directed credit system such as the banks operate. Any prosperity created by public •expenditure through relief works is really artificial and cannot last. In fact the sooner it ends and the workmen are able to set about something reproductive for the national weal the better. It has been shown at Home by some of the economists that the average value of the output by employed persons is £220 per annum. The deduction has been made that if the million unemployed were at work what 'wealth would be produced ! But their employment is measured only on a theory, and there is not room for them. Even if there were, could the extra produce put on the market find a sale. In that connection it is pointed out that though. there are over a million unemployed in Great Britain, the number actually at work and producing is greater than 'before the war. The experience of France has been quoted, where after the war France spent millions reconstructing the devastated areas and other work. 'To do so vshe borrowed freely and at high rates, and with the money industrial activity was stimulated, but the properity so created was quite artificial! and the franc dropped to onetenth of its pre-war value. So we see that artificial or temporising means to adjust the nice points about finance is a dangerous way of working. A strong finance maintained is the surest way of overcoming monetary issues, and Great Britain appears to be weathering the difficult times remarkably well with a very promising outlook on f horizon.