UNEMPLOYMENT

Southland Times, Issue 21649, 10 March 1932, Page 7

UNEMPLOYMENT

MR D. McDOUGALL’S CURE. “GO ON DIE LAND.” (From Our Parliamentary Reporter.) Wellington, March 9. “I believe the land is a cure for unemployment,” Mr D. McDougall said during the course of his Address-in-Reply speech in the House of Representatives this evening, “and I would like to see the Government put more unemployed on it.” Those who were on the land were not in trouble because the rate of interest was too high, he continued, but because they were paying interest on prices that were too high. The farmers were paying eight per cent, in the ’eighties and could still make a living although they were receiving a shilling or one and twopence for oats. ‘Take a farm of 200 acres now,” he said. “At £2O an acre it costs £4OOO. If you have a mortgage of £3OOO on it, the interest at six per cent, is £lBO. A reduction to five per cent, would only mean a saving of £3O, but if the mortgage is cut down to half, it would save £9O. I know some will say that if you cut mortgages in half you are robbing the man who lent the money, but the money isn’t there so he cannot get it.” He had been at an auction sale, he added. The auctioneer offered a farm with £l4OO in encumbrances on it and only got one bid of £3OO. He maintained the land was too dear and said it would have to be reduced in price. He agreed with the Leader of the Opposition that a man should not be allowed to hold land if he did not use it and consequently considered that the Government should tax land speculators until they were forced to dispose of their holdings.