LAND VALUES.

Timaru Herald, Volume XIIIC, Issue 13727, 17 October 1908, Page 7

LAND VALUES.

\XXIOI\S TIME FOR MAXY FARMERS. (" Xew Zealand Times.") Xoth'ng it. gained by disguising lhe fact that many of our farmers are in financial straits. 1 here is iserious cause for alarm. It is the natural result of an ignoring of two economic facte in *he rural world—that the true- value of land is what it will produce, and that the va lue of farm products (regulated entirely by the law of supply and demnndl is so unstable that it can only be determined w'th any degree of accuracy by talcing the average over a period of "years. The ptesent position—it applies almost entirely to the sheep farmer—us due to the culmination of a combination of circumstances -which could have but one ending. The i-urse of /farming' in this countrv : « THE. FEVER OF LAND SPECU .;* ' LATION which' possesses go many men engaged in it. Willi their staple product at boom values which could never last they have purchased land at corresponding fictitious pricti.; and the wretched system of " swapping" farms, which has recently arisen, is one of the means lespons hie for tlid. absurd yalueii which have placed on farm values of some districts. While the abnormal valuers for wool ruled and money was cheap ami plentiful, the farmer could work the land he purchased at an inflated value to fair advantage, hut now lhe wool debacle and the stringency of the money market have placed him in a •ieiious position. ADVAXCES AND RECLAMATION'S. The position has been aggravated n a good many instances by certain banks and financial institutions making advances on wool which the temper of the market hardly warranted, and which has resulted in the unsatisfactory experience lo iin-■fann.-r v.t having to make a leclamat-ion. There- are, it : ti gratifying to know, some banks and financial institutions which limited their wool advances during 'he pa„t season, and in this they have certainly acted in tlie best interests of the fanner. LAXI) VALUES OX A FALSE RASIS. Apart altogether from the <iu.nti<ni of reclamation the fact that many iarmeis are on propert cs. the value of which was based on a wool return fifty j*r .en:. above present ruling rule-, mur>r in.-.in unprofitable woik. With <he ups ami dim us of the uool market it is lemaik able that the pioiliuvr .should hav.- caL culate.l dial the cyd- ot high prices whave u-cenily p.....,| ilnoiigh w..v ..; |a»t a |ieiinanent basis of \alue.- Th.- fact remains -.hat he did. and is now .-uttering th.- penalty. His iniano- .ne ciipph-ii. for where he has i,e-n i-.iv. .i th.- li.iin.inji of a re.-tam..:ioii he In- little or no 1i..1.mi,to mine 1" him. just w lien ii.- ii..« to pn; chase ntock. Moti'-v s -.'. it. e ~n.l near. The stock firms. „*|,ich ..m- m..,e often lhaii not the f.iiiiiei's li.ml.ei. Inve .it lhe present tim- too nni.-h inoney diii.landing to warrant liberality in advances. «:t I, the r<Mlllt that even »In p- the fanner has. the security he is no! alw.iy.. ..1.1- ;., g«: tie inoiiev he r. .|iii.-s. l'.U'.M.s' I'AN'N'itT HE SMI.M. A tew yen- ..g.. ij .. man «..- in , t tjgln .i.lll-l h- n.iihi .ii«|«..e ..: Inj.lllll and '.ski. a .lie net |.l (.|-er 1 V. hill (■<>» ;l firm 1i.,„ :., he a b..ig..in t.. tempi ~ put.lia.er pr-p.ir.-d !.. give a .!r. • I, vi llir How i»is.\nti-:u \iav m: aviiitih 'Hi-- p..-T!..n i» no - ..itis|':i. t<.iy. Im! tilrie !• HO |..i,ii|| 1.1 J..,, !,,[ th-- Illtliic Til- -XJ-.-1 i.-ji. . :-, in,: ,irt!ilti:r ... cixall lag- 1: ■>!;•!! happ.-II- that te111!...l at V adv.l-lty :s the 1..: thing thai . all i:.,p • if pio.penty he I. ..|.' to ;;1..U . al|e - 111 hi« melln-'j- What i« tie-.lei i- - :|i • j!--'ti! jiiti. tin-- is th.' ri.e iiini.A m.,1

financial institutions should sit tight and not force matters. If any attempt, whatever is made to push the farmer a, disaster will be precipitated, and of such a natine that it will take the- country a long lime to rarinvr from it.