Up to 1890 the assessment had been on the net rent a property might be reasonably expected to yield after deducting the cost of rates and insurance and the amount necessary to maintain the property in a condition to command such rent. This was, in short, the old basis of assessment in the mother country; but to meet the objection to the assessment of improvements the Government, in introducing the first Divisional Boards Bill, had modified the valuation clause by the proviso that the improvements on land should be assessed at one-half their value. This was a modification of the New Zealand assessment method, and it gave fair satisfaction for a time. Country ratepayers for the most part approved the change to the unimproved value assessment; but speculators in unoccupied city, town, and suburban lands regarded it as a gross injustice. They not unnaturally complained that an allotment bare, or with a mere hut upon it, would pay as much in rates under the new system as the adjoining allotment which might be the site of spacious business premises or of a palatial dwelling. To this the reply was that the speculative holding of city and suburban lands inflicted gross injustice upon the man who wanted at existing value an allotment for his own use. The Valuation and Rating Act of 1890 passed, however; and the law as it stands has the undoubted merit of simplicity in valuations. On the other hand, the rate levied under the unimproved value assessment upon vacant lands is sometimes oppressive, and appreciably reduces their capital value. Another unforeseen effect has also been realised. The value of a highly improved allotment tends to become depressed to the value of the unproductive and unoccupied allotment contiguous or adjacent to it. Hence an intending buyer is apt to ascertain the local authority valuation of any land he needs, and to regulate his price accordingly. In a buoyant land market this might not much affect the selling value, but for twenty years past the land market for city or suburban properties has been the reverse of buoyant. So the unimproved value mode of assessment has apparently assisted to make a substantial reduction in the market value of city and suburban properties. But that is perhaps a less evil than may at first sight appear. The speculative inflation of land values is simply a tax upon the user for all time; and the moment the income-earning value is exceeded the excess must be regarded as an unjust charge upon posterity.