the present condition of the import trade, and the high rates charged at Australian ports, their earnings are not commensurate with their costs, and so the primary producer becomes the buffer. On a bale of wool of 312 lbs., the pre-war freight was 16/3 against 27/7½ to-day, with a lower market. Your Commissioners are satisfied that the brokers organise display, and sell the wool in a manner which compares favourably with the Eastern States centres. The costs in commission are in favour of South Australia, and your Commissioners recommend the local Woolbrokers' Association to bring their rates and conditions into alignment with the conditions which appertain to South Australia, remembering that every fractional reduction helps the present position. The question of abolition of rebates of commission by the Woolbrokers' Association. The handling charges are governed by the Arbitration awards, and should wages be reduced, the growers should receive a corresponding benefit.

Insurance:

One of the chief grievances of the farmers is the high rates of insurance, and the fact that it is compulsory on many to insure at the high rates increases their displeasure. The number of companies operating, viz., 62 as given in the evidence of Mr. G.L. Bowman, who tendered evidence on behalf of the Insurance Companies, seems an overweight on a community of 400,000, and coupled with this fact is the high rate of commission paid to the agents; it is felt by the producers that the duties of agents could be considerably curtailed, and the farmers thus obtain a corresponding benefit in premiums. Mr. Bowman in his evidence stated that the overhead expenses of 62 companies was not taken into consideration when assessing the rates of premiums for insurance, but this statement is hard to understand; the patent fact is, however, that the farmer must obtain relief in the rates of insurance.

There are two methods open in the opinion of your Commissioners, either for the companies to co-ordinate to reduce their expenses by the elimination of canvassers, with their cumulative expenses, or for the farmers to pool arrangements in their various districts to effect their insurances, and by so doing obtain lower rates by forcing a reduction of the expenses of Insurance Companies. The Commissioners are of the opinion that the Underwriters' Association could co-ordinate in a pooling arrangement, otherwise it may become compulsory on the Government and all secured creditors to protect their clients against high insurance rates. Surely the Insurance Companies have sufficient capital at stake in the State to assist under the present distressful circumstances of the farmers, in deciding on a reduction of premiums. The various Insurance Companies should formulate some scheme for the harvest of 1931-32. If present conditions continue, the Insurance Companies must expect adverse criticism, and further agitation for State Insurance. Transport charges on cattle and sheep. Handling charges at sidings. Railway freights. Water rates and charges for excess water. The high rates and charges for these services constitute a grave disability for the farmer; your Commissioners have dealt with this disability when making their recommendations in Part 7 of this report.

Exchanges—London Parity of Wheat Prices at Sidings:

Your Commissioners have also closely inquired into general statements which alleged that outright sellers had to accept a price for their wheat that did not reflect full exchange rate current at the date of sale at the siding. Mr. Braine, Secretary of the Co-operative Wheat Pool of Western Australia, appearing before the Commission—on behalf of the Chamber of Commerce—Wheat Buyers' section, asserted that it is usual for farmers to take an advance of a certain sum against their wheat deliveries early in the season, and at a later date sell and then collect the balance due. In such cases the farmers receive the average rate of exchange, not the rate ruling the date of sale. With this procedure there is little to contend against, but in the case of an outright sale, Mr. Braine states the farmer obtains the exchange rate on that day. To test this theory your Commissioners submitted the quoted siding prices of wheat as at 25th June, 1931, and in reply with witness supplied statements reconciling the siding prices with the London price on the date in question. The rate of exchange on a usance of 60 days' sight draft was £128 11s. 3d. for every £100 of British sterling, but as will be seen from the statement appended here-under, an average rate of £120 10s. only was used in ariving at the London parity. In reply to Question 4850, Mr. Braine stated that in effect the exchange rate is average throughout the season, but that it depended on the condition of trade and whether merchants would "break even" by giving the farmer the full benefit of the exchange.

1. Appended Cargo Statement. 2. Exchange Rates, January, 1931.

Your Commissioners are therefore of the opinion that settlers who sold their wheat outright have not received the full benefit of the overseas exchange. CARGO.

Per Bushel.

C.I.F. - (1) - 23/4½ per qr. divided by 8 - = - 2s. 11.063d.

Ocean Freight - (2) - 27/6 per ton divided by 37⅓ - = - 0s. 8.839d. - (3) - = - 2s. 2.224d. London Brokerage - (4) ½ % on (1) 2/11.063 - = .175 London Selling Commission - (5) 2d. per qr. divided by 8 - = .250 Superintendence of Discharge - (6) 6d. per ton divided by 37⅓ - = .161 Discount to Buyers - (7) 1½ % for 60 days on (3) 2/2.224 - = .065 Marine Insurance - (8) Marine Insurance 6/- % on (3)—

                                                             2/2.224 - = .078
                                                             Less 12% - = .009—
                                                                                                            = .069—
                                                                                                                0 - 0.720
                                                 (9) -                                                     = 2 - 1.504