BASIS OF VALUES

King Country Chronicle, Volume XXXI, Issue 4954, 11 February 1937, Page 5

BASIS OF VALUES

MORTGAGE REVISIONS. PRICES OVER TEN YEARS. Prices to serve as '-’a basis for mortgage adjustment under the Mortgagor’s Rehabilitation Act have been fixed by the Court of Review and the schedules as they apply to Te Kuiti, Otorohanga and adjacent districts, as indeed throughout the Waikato and King Country, are now available. The figures are calculated on the returns for the past ten years, and in most instances approximate present market values, except in the case of sheep and wool, where they are much below the ruling rates. But ter fat Values. In relation to butterfat, the order of the Court states that the Primary Products Marketing Department -had advised that the present guaranteed f.o.b. purchase prices for butter and cheese were based on butterfat prices of 13.04 d per pound in the case of suppliers to butter factories, and 14.54 d per pound in the case of suppliers to cheese factories, but that it had insufficient data available to attempt the determination of the district butterfat equivalents of the guaranteed purchase prices. To some extent, it had stated, this deficiency could be remedied from the statistics of dairy factory production compiled by the Census and Statistics Department. From these the average payout by butter factories and cheese factories and all dairy factories (including dual factories) had been compiled for each provincial district for the seasons 1926-35. Season averages were weighted, that was, the total butterfat supplied to factories divided into the aggregate payout. In conformity with the practice adopted in respect of wool and live stock prices the ten yearly averages quoted were unweighted means of the annual weighted figures. These disclose that over the period of ten years, the dairy factory'payout per lb. of butterfat in the various provincial districts has been: Butter

Stock Prices. The schedule covers stock prices in a most comprehensive manner, and sets out the 10 yearly average prices for the Waikato and King Country as follows: Waikato. Sheep: 4 tooth wethers 20s Id, 2 tooth wethers 18s lid, 2 tooth ewes 23s 6d, 4 tooth ewes 22s 3d, 6 tooth ewes 22s id, 4 year ewes 21s Id, 5 year ewes 18s lid, sm. ewes 14s sd. Store lambs: Ewe lambs 13s, wether lambs 11s, m.s. lambs 11s lid. Cattle: Dairy cows £9 4s 6d, dairy heifers £8 6s 3d. Run cattle: 4 year £7 Is, 3 year £6 ss, 18 months to 2 years £5 ss, yearlings £3 16s. King Country. Sheep: Wethers 17s lid, 2 tooth ewes 22s Bd, 4 and 6 tooth ewes 21s 9d, 4 year ewes 19s 6d, 5 year ewes 17s 4d, 6 and 7 year ewes 12s lid, ewe lambs 14s Id, wether lambs 11s sd. Cattle: Dairy cows r.w.b £7 4s 9d, 2 year heifers r.w.b. £6 7s Id, yearling heifers and calves £3 3s 9d. Female run cattle: Run cows and heifers (July-December) £6 0s lid, (JanuaryJune) £4 15s sd, 18 month to 2 year £3 5s lOd, calves and yearlings £2 Os lOd. Male run cattle: 2% to 3 year steers £4 19s 2d, 18 month to 2 year £3 18s 3d, calves and yearlings £2 13s lOd, bullocks £6 3s 9d. What Standard for Pigs? It is not quite clear from the publication, which is entitled, “Order of Court, Fixing Average Prices,” which is the standard of pig values to be applied in the Te Kuiti, Otorohanga and adjacent districts. The average prices for the North Island are given, the only districts distinctly specified being Palmerston North, Masterton and Taumarunui. They are as follows :—< Palmerston North: Breeding sows £4 7s 3d, porkers £2 11s, baconers £2 16s 3d, big stores £1 13s 4d, slips £1 4s 3d, weaners £1 0s 6d. Masterton: Breeding sows £4 13s sd, porkers £2 5s sd, baconers £2 13s Bd, big stores £1 10s Bd, slips £1 3s lOd, weaners 19s 2d. Taumarunui: Breeding sows £2 5s 6d, porkers £1 10s, big stores £1 Is sd, slips 14s lOd, weaners 13s 2d. Position of Wool Wool has been treated most exhaustively. Apparently every sale at each centre during ten seasons is quoted, giving the prices at each, for all main classes of wool. There is then given a sumpiary of the 10 years’ average for each selling centre. For the Auckland province the averages are set down as under:— Medium halfbred, 50/60 super, 134 d; average ll£d, inferior 9£d. Extra fine crossbred, 48/50 super, llld, average 93d, inferior 8!d. Fine crossbred, 46/48 super, 103 d, average 83d, inferior 72d. Medium crossbred, 44/46 super, 92d, average Bd, inferior 62d. Coarse crossbred, 40/44 super, B£d, average 7£d, inferior 6|d. Extra coarse crossbred, 36/40, average 7d. During this season’s sales prices have been approximately 50 per cent, higher than these “standard” prices. Effect of the Exchange. Altogether the schedule is a most comprehensive one, and of great interest to all connected with our primary industries. Now that lists for the last ten years have been assembled, it is recommended that these

be used as a basis for permanent future records. The prices for each year as it passes could be added hereto. The ten original years could . be used as a base and future movements could be shared as rising * above or declining below that base. But one criticism might be levelled at the schedule: it takes no account of the exchange rate, which was approximately 25 per cent, over the ; last thi r ee years of the 10-year per- f iod. It is debatable as to whether ■ the exchange appreciation should not have been added to the prices realised during the six and a half preexchange years. Only by so doing: ; would present returns be accurately Compared with those of the past.

Cheese and Butter Cheese Dual factories factories factories Auckland 13.36 14.21 13.60 Hawke’s B. 13.21 13.46 13.27 Taranaki 13.66 13.77 14.09 Wellington 13.62 13.84 13.76 Marlbor. 12.47 12.87 12.71 Nelson 12.68 13.81 12.48 Westland 12.62 12.49 12.67 Canterbury 12.92 13.52 12.98 Otago 12.69 14.33 13.15 Southland 12.46 14.15 13.96 Average 13.33 13.92 13.65