LAND VALUES.

Northern Advocate, 15 June 1923, Page 3

LAND VALUES.

AND MARKET PRICES

A WORD OF CAUTION.

The influence of oversea market conditions on land values in the Dominion was discussed by Sir George Elliot, chairman of directors, at the annual meeting of the Bank of New Zealand to-day. "The serious ami somewhat sudden drop during A*pril and May in the value of dairy produce and meat," he said, "once again illustrates the unwisdom of estimating the value of a season's output of produce on temporarily high prices. To-day wool is selling .it satisfactory prices, and indications point to 'ts being our most profitable produce for the next few years; but it would be imprudent indeed to b.:se the value of sheep country on the present season's prices for wool, lamb and mutton. All experience suggests that, as the years go by, sheepfarmers must expect again to encounter periods of lower prices. Not only is rural land, as a rule, too highly valued, but the areas held, particularly in di-irying districts, are in many instances far too large for maximum production, especially as they are often held by men with quite inadequate means. The Waikato and Thames Valley districts are cases in point. We are informed by practical farmers that a great portion of these districts could be subdivided into farms of about 100 acres, and that that area, with adequate cultivation, would carry 60 cows. A moderate sized herd, by careful selection aiid handling, could, within 7 or S be brought up to a standard of oOOlbs. of butter-fat per cow. Moreover, labour troubles, which probably are nowhere so exasperating as on a dairy farm, would be minimised on small holdings. '

"We cai.not hope for contented rural population until land values are based on a reasonable scale, a scale that will show a fair return on the capital employed and adequate compensation for the labour of the farmer. "So many instances of the evil effect of the recent boom in farm property come directly and indirectly under the notice of the bank, that we should be callous indeed if we did not fool strongly on the point and do our best to prevent a repetition of the evil."