Percentage to Wheatgrower. To Community.

This table discloses that in 1921 the grower received 81 per cent of the F.O.B. value of his production as compared with only 56 per cent in 1931. On the other hand, the community received in railage, handling charges and labour providing cornsacks and super 11.8 per cent in 1921, but 35 per cent in 1931. If all other requirements of the farmer were treated in a similar fashion, the position would be even more striking, as he certainly made a loss in 1931.

Percentage sent out to Australia.

A deplorable condition is indicated in regard to that proportion of our costs which are entirely lost to the State. The increase of 5.4 per cent in the proportion of the wheat realisations sent out of the State for these two items alone is serious, when one considers that similar proportions may be expected in regard to all other commodities used by the wheat-grower, and not produced entirely within the State. While it might be possible to distribute the burden of losses within the State, the increased proportion of the price of wheat that is sent out of the State for cornsacks, etc., must continue to be a loss to the community no matter how it is distributed.

Amount distributed directly in Wages. Indirectly.

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 railwaymen, 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 out by the growers of wheat for commodities and services of all kinds. In other words, the values of the wheat produced in 1931 was sufficient to provide at least one-quarter of the population of W.A. with a living somewhat better than that allowed for in the basic wage.

The direct return to the community is almost directly proportional to the quantity of wheat produced. (This does not appear from a comparison of 1921 and 1931, due to wide differences in prices of goods and service in those two years.)

Effect of Reduction in Wheat Production:

If, therefore, the wheat production were reduced by half, the immediate effect would be a reduction in direct payments to the community from £2,000,000 to £1,000,000 and in indirect payments from £3,500,000 to £1,750,000. As a consequence, half of that proportion of the State's overhead, which is at present being born by wheat, would be loaded on to other commodities, and either unemployment would be greatly increased by a withdrawal of their living to the equivalent of the basic wage from nearly one-eight of our population, or the burden of carrying this extra number would be placed upon the State's other products. It would appear, therefore, that it is of vital importance to our State that wheat growing should be continued to our utmost capacity, and that, even if the community were forced to subscribe a very substantial sum to achieve this end, they would be definitely better off than by allowing our production to wane.

Producer's Extra Work for Reduced Return:

The figures disclose that for 49,500,000 bushels marketed in 1931, the growers received almost £500,000 less than for 12,000,000 bushels marketed in 1921. To achieve this they were obliged to crop 3,957,000 acres compared with 1,276,000 acres in 1921. In other words, the work was more than trebled, whereas the total return to the farmer was reduced.

Statement—Trustees of the Wheat Pool of W.A.

569 Wellington Street,

Perth, Western Australia, 17th June 1931.

The Chairman,

The Royal Commission.

Sir ; —The Trustees of the wheat pool feel that generally speaking they can best carry out their trust by financing, acquiring and marketing the wheat entrusted to them efficiently and economically, and to further this end certain evidences will be submitted. In addition to this evidence, and with a certain amounts of reluctance and only because of the abnormal times and desperate position of our wheat industry, a suggestion is put forward for consideration.

The Evidence affirms that —

1. The grower should receive, for wheat used for local consumption, a price higher than over seas parity.

APPROXIMATE WHEATS STOCKS IN THE FOUR MAJOR EXPORTING COUNTRIES AFLOAT TO EUROPE IN THE DANUBE BASIN, AND IN EUROPEAN IMPORTING COUNTRIES —AUGUST 1ST,1921 —30.

                                         Million Bushels.

Position. 1921.— 1922.1923.—1924. —1925. —1926. —1927. —1928. —1929. —1930. United States........ .... 124 —117. —152. —146. —117. —99. —113. —128. —247 Canada........................24 —40---32----45---27---37--51---78---104---112 Canadian in united States......1--1--1--3--3--4--5--14--23--16 Argentina------40---53---64---66---57--51--69--90--135 Australia-------47--18-28--26--23--17---23--29--26 Afloat in Europe----58---49---39--42--33--39--46--45--38 U.K ports------8---7---8--10--9--4--14--23--29---26---35 Danube Basin---5-- 10--15--20---5--20--21--3--63--28 European importing countries----65--10--65---100-65--96--79--93--139---112 United States in Canada---1--1---2--1--2--1--1--2--2--4 Totals---374---396----406---459---341---368---416---492----783---698

32. Sufficient to provide at least con-quarter of the population of W.A. with a living somewhat better than that allowed for in the basic wage.. The direct return to the community is almost directly proportional to the quantity of wheat produced.(This does not appear from a comparison of 1921 and 193, due to wide differences in prices of goods and service in those two year.)

EFFECT OF REDUCTION IN WHEAT PRODUCTION:

If, therefore, the wheat production were reduced by half, the immediate effect would be a reduction in direct payment to the community form £2,000,000 to £1,000,000 and in indirect, payments from £3,5000,000 to £1,750,000. As a consequence half of that proportion of the State's overhead, which is at present being borne by wheat, would be loaded on to other commodities, and either unemployment would be greatly increased by a withdrawal of their living to the equivalent of the basic wage from nearly one-eighth of our population, or the burden of carrying this extra number would be placed upon the State's other products. It would appear, therefore, that it is of vital importance to our State that wheat growing should be continued to our utmost capacity, and that, even if the community were forced to subscribe a very substantial sum to achieve this end, they would be definitely better off then by allowing our production of wane.

PRODUCERS' EXTRA WORK FOR REDUCED RETURN:

The figures disclose that for 49,500,000 bushels marketed in 1930, the growers receive almost £500,000 less than for 12,000,000 bushels marketed in 1921. To achieve this they were obliged to crop 3,957,000 acres compared with 1,276,000 acres in 1921. In other words, the work was more than trebled, whereas the total return to the farmer was reduced.