BANKRUPTCY FIGURES.

Southland Times, Issue 18964, 11 June 1923, Page 4

BANKRUPTCY FIGURES.

The bankruptcy figures for May show a substantial decrease over those for the corresponding month of last year, and in that respect give some ground for the hope that the worst effects of the slump have passed. The first five months of 1922 saw a steady rise in the number of bankruptcies, which at May had reached 80, but this year the movement has been in the other direction, as the following table shows:—

In the first five months of this year 69 farmers filed in bankruptcy, a few more than in the first five months of 1922, but the motor trade with 13 bankruptcies shows an improvement. The failure of farmers is a serious matter, and it is a sign that the slump is still affecting rural interests, but there is nothing in these figures to suggest that the Government valuations are responsible for this crop of bankruptcies. A great deal has been written about the valuations of rural property to suggest that the Government is ruining the farming community by putting terrible imposts on land in the shape of valuations which are monstrously high. Doubtless there are a few isolated cases where a man has a grievance in this matter, but the valuations are usually well under selling value, and it is asking us to believe a great deal when the rates and taxes on these valuations are blamed for the bankruptcies. So far as local taxes are concerned it must be remembered that if the valuations are lowered the rate of the taxation must be raised, because the local authority requires a certain amount of revenue, and must get it out of the ratepayers. We do not suggest that heavy taxation is not harmful to industry, but if the valuation question is considered fairly, we do not think it can be dragged in as an explanation of the failures in the country. Its bearing on soldier settlement has also been greatly magnified for political purposes, in order to give the impression that the Government is callously allowing ex-soldiers to be ruined on every hand. Readjustments will be made in their cases because the State is the landlord and can make remissions, but the valuations of privately-owned properties are quite different, and when they are quoted as the explanation of farmers’ bankruptcies plain folk may well ask for sbme enlightenment to enable them to follow the line of reasoning which connects them.

1923. No. 1922. No. 1921. No. January .. 49 31 11 February .. .. 56 43 14 March .. .. .. 73 74 16 April .. .. .. 49 42 17 May .. 62 80 33 ■■ .. ■ ■I ■ Totals .. 289 270 91