1931

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The liabilities may, therefore, be taken in the neighbourhood of £31,659,654.

The above figures do not include amounts owing by farmers to stock and station agents, private mortgages, doctors, and tradespeople other than country storekeepers.


Acreage of Land Held:

Acreage of land held by farmers and in course of improvement. In the statement presented to us by the Primary Producers' Association it would appear that the total acreage of land in W.A. alienated is— 14,670,949 Total acreage in process of alienation 21,275,181

                                                  Total   35,946,130

giving an average acreage of 1,748 per farmer to the 20,559 farmers who are responsible for the above mentioned indebtedness. Of course this acreage does not wholly apply to wheat and sheep farmers, whose number is 10,600. A certain proportion of the land is held by settlers in the South-West with whom the Commission is not dealing.

The total acreage of improved land so held is 13,703,310, leaving a balance of unimproved land totalling 22,242,820 acres, one an asset, the other a liability.

Total acreage cleared ...., 4,566,001. Total acreage under grass ..., 223,925. Total acreage of new land ready for cultivation ..., 774,654. Total acreage fallowed ..., 2,597,846. Total acreage previously cropped ..., 3,544,650. Total acreage ringbarked and partially cleared ...,1,996,231. Total ... 13,703,310.

The value of these lands, at the present time, owing to there being no basis of value, cannot be ascertained, but whatever it is, there must be added to it the value of live stock and farm machinery held by the farmers.

The disparity between areas of the land improved and the area of land alienated and being alienated, is very marked.

The evidence of the Managing Trustee of the Agricultural Bank, and the District Inspectors, is to the effect that, in the older farming areas, a greater portion of the areas held are now in useful production, but in the more recent areas alienated the proportion of unimproved land is greater, but such land is gradually being brought into production.


Importance of Wheat Industry:

It is common ground that the world fall in commodity prices has lessened the National income of Australia to such an extent that, in order to meet the interest on external loans, Australia must continue her export of primary products, even if produced at a loss.

The wheat industry has become so essential to the trade of the State that it must be sustained over the present period of price failure.

The importance the industry plays in such trade may be ascertained from the perusal of a statement relating to the present condition of the Wheat Industry, prepared by Mr Thomson of the Westralian Farmers, Limited, at pages 1 to 6. This statement is annexed as an appendix to our report, numbered "Appendix" 1.

The following paragraph is extracted from the statement:—

"...One significance of the above figures is that whereas in 1921 only £572,000 was paid directly to the community, in 1931 £2,174,000 was distributed directly in wages for Railway men, clerks, lumpers at sidings, and at ports, workers in superphosphate factories, and through them indirectly to coal miners in Collie, and tradespeople generally throughout the Southern section of the State. In addition to this, the community received indirectly £3,469,500 paid by the growers of wheat for commodities and services of all kinds. In other words, the value of the wheat produced in 1931 was sufficient to provide at least one quarter of the population of Western Australia with a living somewhat better than that allowed for in the basic wage..."


Carrying on of Industry Community Obligation:

All witnesses examined, including farmers, merchants, storekeepers and representatives of Associations connected with the Industry, are unanimous in stating the following positions:—

(a) The prosperity of the State depends on the wheat industry.

(b) The present financial crisis in the industry, to a great extent, has been occasioned by the price failure in the 1930-31 harvest, and

(c) The rendering of financial assistance to the farmers, at the present time, is a community obligation.


Reasons causing Collapse of Industry apart from Price Failure:

Wheat Farms.— In the year 1914 there was a crop failure. Since then there has been a succession of good to moderate seasons and prices. The average wheat yield from 1914-1931 has been 10.6 bushels to the acre and the average price realised was 4s. 11¾d. a bushel.

How with good seasons and good prices such an accumulation of indebtedness should have arisen is hard to say, though apart from the indebtedness attributed to the price failure in 30-31 season, it is found that there was a large carry-over of indebtedness from the previous seasons. The following reasons may, however, be suggested:—

(a) The false prosperity created by lavish over-easy borrowing.

(b) The unlimited extension of credit.

(c) The over-trading by merchants in competition for business, particularly since mechanical farming came into existence.

(d) The mounting interest rates.

(e) The effect of steady increase in tariff.

(f) The belief that the strong world prices for wool and wheat would continue.