REDUCTION OF RENTS.

New Zealand Herald, Volume LXIX, Issue 21131, 14 March 1932, Page 12

REDUCTION OF RENTS.

Sir.—My thanks are due to " Simon Pure for his intention of enlightening mo as to tho landlord's liabilities. The fact that I am awaro of these items does not vitiate my appreciation of his reasoned statement. It, is a question of paying in the present for past, but now nonexistent, values. It is because my landlord is in a position similar to the real or supposititious case cited, by "Simon Pure that I have not asked him to reduce my rent; for the same reason 1 do all the repair work I can manage, being handy with tools. Tho payment of 7 per cent, upon £9OO is a quito uneconomic outlay under present conditions, and the interest rate thereon should be reduced and perhaps the term of the mortgage in respect of interest on loan ho would then bo in a position to reduce my rent, but not otherwise. One of the things I had in mind in referring to equality of sacrifice was a general interest reduction, despite the difficulties surrounding that problem. Should there be a further cut in wages and pensions (I alludo to disabled soldiers' pensions here). and no general reduction in rents, the many tenants will be driven to sub-letting, with its consequential overcrowding, lack of full privacy, and other objectionable features. There will be more empty houses, and in turn competitive reductions in rent finally. It appears to me that it would be a great deal better to face up to the position now, and a necessary preliminary is a. reduction in interest. After all, interest is wages, the wages earned by capital. I would be the last to object to capital being paid its wages, but the view that, the incomes of th»> " rentier " class (those in receipt of incomes from investments, etc.), should be sacrosanct, and increased in purchasing power, while most other forms of income are subjected to depression appears to me to be fundamentally wrong, and i;s rectification essential if we are to surmount our present economic difficulties and place ourselves in a position enabling us. successfully to compete in the world's markets. Simple Simon.