LAND VALUES.

Stratford Evening Post, Volume XXXXIII, Issue 69, 16 September 1924, Page 4

LAND VALUES.

In a recent article the 'Mercantile Gazette" appealed for the stabilisation of land values, on a sound basis, calculated on what the land is capable of producing. The Gazette. points out that the producers have? to carry the whole burden of the public and private indebtedness, and that there is ample money in the Dominion available to assist farming enterprise if the Government will alter its policy. It sees no reasou why share investments should he considered superior to good mortgages, if the Government would encourage those who are prepared to assist the farming industry with capital. The Wellington journal goes on to say: At present the income tacs works exactly the other way and for. so long as it remains, the country will be unable to obtain that supply of money which is absolutely necessary' to its well being, and it would be a good policy for the Government to make some sacrifice to bring about greater elasticity in farmers' finance. Those who are called upon to pay the maximum income tax in a "better position to assist thsjß are those who claim total exem^^

tion. The wealthy man has money to lend, but he cannot economically invest in a six per cent, mortgage under present conditions, as if the Government takes twenty-five per cent., he would have a return of four and a half only, and he can do better. We put forward a suggestion that persons lending on agricultural mortgages at five per cent, or less, should not be called upon to pay income tax. If the Government were to exempt such mortgages, w« are quite certain that money would flow into the Dominion from outside quarters and there would be large sums offering from local sources. We. think that the farming section of. the community would benefit immediately as money would be in full sup-' ply for mortgage and at a cheap rate. We are also sure that the Treasury would not be much'affected, as the loss would soon t»c made up by the increased prosperity which would follow if our farmers could obtain the money they, require at a low rate, and such prosperity would be reflected by the increased assessments issued from the Tax Commissioner's Office, and by the greater volumc of goods which the country would require from overseas.