MUST MAKE BEST USE OF THE LAND.

Star (Christchurch), Volume XLIV, Issue 145, 20 June 1931, Page 13

MUST MAKE BEST USE OF THE LAND.

BANK CHAIRMAN’S ADVICE TO DOMINION

(Special to the “ Star.”) WELLINGTON, June 10. “ The land being the basis and source >f welfare in the Dominion, it is to the nterest of everyone that the best use hould be made of it. But for it there vould be little to do for any of us.” This statement was made by Mr Wiliam Watson, chairman of the Bank of sew Zealand, in the course of his adlress at the annual meeting of the Dank’s shareholders to-day. lie emDhasised that because of the great lmDortance of the farming industry the Dank was straining its advances to its customers for the purpose of assisting armers to improve the productiveness Df their land. “ The circumstances of the present •ecession in the prices overseas of our primary products, and also in our in* :ernal trade, are so well known that I iced not dwell on them,” said Mr Watson. “To achieve greater prosperity must be the practical endeavour of everyone in the Dominion, considering well how we compare with other countries. His Excellency, Lord Bledisloe, from his expert knowledge of scientific methods in Europe, has publicly adduced what should be done to advance the agricultural and pastoral interests here, and the labours of the Cawthron Institute, the Massey and the Lincoln Agricultural Colleges, and the Department of Scientific and Industrial Research, add their important services. Land Improvement Necessary. 44 Of land improvement there is much need. In disposing of bush lands in the past, not enough care was taken by Government to see that purchasers or tenants owned sufficient money, or could obtain sufficient credit to develop their holdings; in many cases rent had to be paid on large areas while the holders had not the means to bring more than small portions into grass, and, being unable to farm the clearings properly, had to allow them to relapse into fern and second growth. Even rich flat lands were cropped and grazed for many years without sufficient application of fertilisers, until it was found that the soils were exhausted by continual cropping, and the best grasses in the pastures were eliminated. Of late years manuring and liming have been practised to greater extent, especially on dairy lands, but much more is necessary to obtain the best results from sheep and cattle country. “ The Government recognises the importance of retrieving the productiveness oL abandoned farms, and is doing something in that direction both to improve the land and to afford employment, but without further borrowing their efforts must needs be limited. Owing to the low prices for last season’s output, many farmers have not the wherewithal to acquire the fertilisers necessary to improve and maintain the quality of their soils, and it rests with bankers, stock and station agents and mortgagees to help them. This bank is straining its advances to its own customers for the purpose. High Farming Costs. 44 In comparison with the years before the war, farming costs are so high that they, combined with the reduced prices, prevent the majority of farmers from carrying out their operations profitably, but there is hope that conditions will soon arise which will bring about a favourable change. 44 There has been little demand for land, either urban, suburban or rural, and indications are that sales can only be effected on what will be the future bases of values. For many years warnings have been given from this chair as to land values being inflated beyond all reason, but little attention was paid thereto. Depression Will Pass. 44 The period of recovery from the existing depression will no doubt be slow and full of hardships, yet that there will be recovery, though not perhaps to the standard of recent years, may in the light of past experience be confidently counted on. Even middleaged people have seen or read of several depressions in various countries, and have known of their passing away,

to be succeeded by periods of confidence and prosperity. The earth and the seas are bounteous, and the affairs of men in any free country are in their own hands to make or mar. Perhaps it will occur to all of you here that better might have been done in the past by the people of Australia and New Zealand for themselves and their descendants. By wiser action and living within national means, better times will assuredly come, and the sooner the action the sooner the result.”