Western Star WALLACE COUNTY GAZETTE. PUBLISHED Every Tuesday and Friday. TUESDAY, APRIL 6, 1920. INFLATION.

Western Star, 6 April 1920, Page 2

Western Star WALLACE COUNTY GAZETTE. PUBLISHED Every Tuesday and Friday. TUESDAY, APRIL 6, 1920. INFLATION.

There are those in the Diominion who hold strongly to the opinion that New Zealand is blowing a bubble that will eventually burst with disastrous effects. From many quarters comes warnings about an inflated currency inflated prices, and inflated land values ; but, probably, these will remain unheeded until the inflation reaches bursting point. The latest voice to be raised is that of Mr J. Bar ugh chairman of the Fanners’ Co-operative Auctioneering Company, Hamilton in the provincial district of Auckland.At a meeting of Shareholders he sounded a note of warning on the danger of the inflation of land and the growing tendency of farmers to rely on securing very liberal financing in connection with the operations. “During the past year,” he said, “owing to. the speculative demand for land prices have jumped considerably, and it is doubtful in a good many instances whether these high prices can be justified. Shipping difficulties and the uncertainty as to the course of the markets abroad will undoubtedly have the effect of restricting rather than increasing accommodation. The termination of the commandeer on June 30 next is expected to materially affect the finance of the Dominion. Under the commander the Imperial Government paid for what it purchased, but in 'future we shall have to finance our requirements in the old style and the conditions upon which I have previously remarked are sure to result in the banks pursuing, a very conservative policy in making advances against produce. The burden which will be cast upon them will be a heavy one, and it therefore behoves everyone to put their finances on a sound footing without delay, so as to minimise the effects of any restrictive policy.