OUR STAPLE INDUSTRIES.

Taranaki Daily News, Volume LIII, Issue 181, 10 November 1910, Page 3

OUR STAPLE INDUSTRIES.

I RURAL NEW ZEALAND UNDER f REVIEW

B.y K. J. EAMKS.

• No. 3. (All Rights Reserved). SOMETHING ABOUT LAND VALUES. People in other parts of New Zealand who are not familiar with the Taranaki province should remember that the writer is dealing with South Taranaki, ami, just now, more particularly with the coast lands to the south of Mount turnout, which are claimed to be unrivalled for dairying purposes, by reason of their situation, ttie climate they enjoy, and their soil constitutents. This is merely repeating the expressed convictions of a great majority of those with whom I have come in contact. Those convictions, possibly, arc the product of experience. At any rate, they represent a preponderating point of view which, when it comes to dairying, sees Taranaki first and the' rest of the universe in another position. One of the direct consequences of this generally-held view has been the astonishing increase in land values which has lieen recorded' during the past seven years. There is a world of financial romance in the transactions that have taken place, and quite an army of well-to-do men has been created. In Taranaki in 1008 no fewer than 129,527 acres of land changed hands. That was the •'slump" year, but the slump did not bring down the price of farm properties. What it did, however, was to make it more difficult to finance deals and the result was that in UK)!) the area transferred was much less, namely, 100,001 acres. For the year ended March 31st, 1-DP.i, the lands finding new owners shrunk still further, for within that period the transfers registered affected only 6-1,948 acres. It will follow, of course, that as values find the highest level at which the land can be profitably farmed still fewer places will suffer an annual change of ownership. But just now, and for some years past, there is and has been a strong speculative element at work. People have bought; not only with a view to bona fide farming, but* in the expectation of selling again at a profit. With butter-fat at lid per lb big things became possible, and as the fat value had decimals added to it, higher and still higher went the land values. Of course I here are many farmers who have established themselves safely on their Jjoldi.'.-vs and entertain a wholesome sentiment and affection for their homes. In their eases the high prices offered do not constitute an effective temptation. It will be'interesting just here, for the purpose of comparison, to quote the average prices paid for land throughout New Zealand during the year ended March 31, !!)U), also showing the area transferred:—

When the prices of dairy land are taken into consideration it is evident that a great deal of out-back and inferior areas must have been included in the Taranaki transfers to being down the average to £lO 7s 2d. In the Wellington district there are some high-priced, lands, but in its case the average is . helped by the inclusion of town properties. Ta'king the bad land with the good it is shown that more money was paid (or promised) for 05,208 acres in Taranaki than for 200,532 acres in Southland. DEPOSITS AND PROMISES. The words "or promised" have been put in parentheses, and just here it might be as well to note that throughout this province a big contributing factor to the prices that have been obtained has been a system which is well developed of financing milkers into farms upon very small capital. In the past many of these men have done very well indeed; what will be the upshot of buying into land at £SO, £55, £OO and £65 per acre remains to .be seen. At these .figures there are still many i cautious farmers who declare that the prices represent a perilous dependence upon the maintenance of current values for butter and cheese in the English markets. It is shown by the official returns that there has been a positively phenomenal growth of registered mortgages on real estate in Xew Zealand during the past six years—a term which roughly coincides with the period during which land prices have advanced so amazingly. From 1804 to 1010 there has been an increase in the registered mortgages (which now stand at £77,771,721) of £32,278,U5i), or about 75 per cent. Taranaki in 1000 carried £5,832,006 and for the year ended March 31 last the sum was ",£0,326,083. LAND PRICES DOUBLE IX SEVEN YEARS.

Auckland district land values doubled in two years but there, of course, the position was very different to the condi-' tions in Taranaki, where the land was already well settled and furnished with factories. When one takes the average rise in Auckland district the advance does not appear to be nearly so impressive as that which has occurred here. In Auckland the average values rose from £•2 1.2s Od in 1008 to £5 Ids 2d in 1010. 'ln Taranaki, taking the whole district, the increase was from £8 as to £lO 7s 2d. But in South Taranaki, over a period of seven years, land values in that strip of coastal dairy country from Patea through Hawera and Manaia and stretching beyond Otakeho, have increased in many eases a hundred per cent.—from £22 to £45 per acre at Otakeho, from £25 and £3O to £SO and £6O at Manaia, similarly about Hawera, from £25 to £36 at Mokoia. from £2l to £4O about Alton and Murlevvilie. and from £2O to £45 at Wheanakura. These figures represent sales which have actually taken place, mostly by private negotiation, but not infrequently at public auction. [ have selected Auckland district by way of comparison because so many Taranaki farmers who are seeking opportunities for land speculations have turned their eyes northwards. Not a few, however, have looked to sunnv Hawke's Bay and Poverty I'av; other's have come back with si ones of the fertility of Xelson, Marllmroiurh and Canterbury; other good farmers have firmly declared for Otago in view of its dairying development.; whilst cropping arid sheep farmers who are giving wav to 1 the nmrcu of the Golden Cow are investi- | gating the conditions of Southland, where ■ (lie average land values look tempting, j The speculative development has had an unsettling effect upon Taranaki farmers

and many who have sold out at substanI tial profits may now lie found scattered throughout Xew Zealand. Bankers and otheMinaiU'ial men have issued warnnrz upon warning that too much is being given for these dairy lands, but what can be said when we see level-headed farmers, of long experience in the district, also buying 1 at prices which the financial institutions declare to be ruinously high? The presumption is that the financiers are endeavoring to take precautions against a possible drop in the price of produce, whilst the farmers (who have figured out the profits so long as produce values are maintained) are willing to take the risk.

District Acres. Value Average per acre. £ s. d. Auckland 322,581 1,776,031 5 10 2 Taranaki 03,208 075,516 10 7 2 Wellington 199,270 2,129,244 19 18 8 H'ke's Bay L65,76L 784,504 4 14 8 PViy Hay 55,28!) 421,034 7 H 3 Nelson 40,S54 148,806 3 1-2 M) Marlboro' 37,007 85,304 2 0 2 Canterbury 240,387 2,286,900 9 10 3 Otago 120,334 812,047 6 14 11 Southland 206,532 674,070 3 5 3 IVestland 9,705 26,055 2 13 2 4.403,018 9,820,201 0 14 3