interest on the construction of our roads throughout the State is made a charge against general revenue, the interest on railway construction is made an item of freight. The interest of road construction is borne by the whole community, and bears little or no relationship to the degree in which they use the roads. The interest on railway on railway construction is borne only by railway users (with the one exception stated above), and is borne in proportion to the degree in which they use railways. We wish to draw special attention to this anomaly, as it not only places a burden on the farmers which our roads policy admits should be spread over the whole community; but it is also a definite reason why the road transport is able to compete with the railways, even in the transport of goods that would appear to be more satisfactorily carried upon steel rails.

Another factor which makes for high freight charges and at the same time a loss on the railways is the idle land which lies alongside if them. This was reported on by a Commissioner who inquired into the state of our railways many years ago. The position is no better to-day. Nearly 36,000,000 acres have been alienated or are in process of alienation. It is alleged that a large proportion of this is valuable land, still in its virgin state. The Official Abstract of Statistics, 31st March, 1931, show that less than ten million acres were being used for agriculture. This includes 2,000,000 acres partially cleared, nearly a million newly cleared and ready for next year's crop, 3½ million fallow, 324,000 under artificially sown grasses. This "Abstract" also shows that 3½ million acres previously cropped have gone back to sheep.

The second annual report of the Development and Migration Commission spoke very strongly on this point. Their utterance so fits the position that we wish to include it as evidence:

"Over a wide extent of country in every State there is ample opportunity for increased production at lower costs per unit. Of all the schemes that can be devised for increasing the country's power to absorb and support new population, the most effective is the one that will augment the productivity of the lands already cropped.

"The duty of using to better purpose the lands upon which Australia has spent millions of the national debt for railways, roads, water schemes and general public works was fully recognised by the British Economic Mission almost at the beginning of its survey. There is a pointed reference to the subject in its report. Railway Commissioners in each State have pointed out that the inadequate use, or misuse, of relatively good lands through which their lines have been constructed, means a heavy train-mileage for little freight, and, therefore, serious loss. . . . . . More intensive use of occupied rural lands is one of the answers to railway deficits which involve to a significant extent the State's finances and severity of taxation. . . . . . The Commission cannot too strongly appeal to landowners throughout Australia for consideration with regard to making available more land of a suitable character for intensive production where prospects and markets are favourable. From whatever point it is considered, the national necessity for more intensive production is apparent. It is a national duty for people holding areas of land within reach of roads and railways, and within the better rainfall areas, to co-operate with the Governments and people of Australia in this respect.

"Decisions upon questions of public policy do not lie within the scope of this Commission's functions. It is incumbent upon the Commission, however, to direct the public mind to the real need which exists for making a strong progressive movement toward the better utilisation of our national assets."

Road Policy:

The construction of costly main roads running parallel with our railways does not seem to have been inspired by sound principles. It seems rather a further manifestation of our love of show and pleasure-seeking than to have had any great economic value, or necessity in proportion to its cost. It would seem that a sounder principle would have been to have concentrated upon the building of first class feeder roads to our railways. This would have lightened the costs of wheat carting and all deliveries from the railways to the farm. It would also have precluded the uneconomic competition of motor transport with the railways. Finally, it would have saved the community the capital and maintenance cost of duplicate systems designed to carry out one purpose, but which either could achieve satisfactorily, while both have become a load too great for the community to bear. We feel strongly that the guiding principle in the future should be the construction of rural roads which server our railways rather than roads which compete with them.

Bulk-handling of Wheat.

It may be that some considerable reduction of farmers' costs will be found in the inauguration of bulk-handling of wheat. If it could be financed, and we feel disposed to think it could, the change-over at the present period would do much to alleviate the unemployed position. The question is one requiring the evidence of an expert. The Perth Branch of the National Party has decided to make that subject their next for investigation. Until fuller facts are made available to us, we cannot do more than draw your attention to the matter as one of possible profitable investigation.

Better Farming Methods.

(a) Much could be done by way of better cultivation and by the preparation of a greater area of fallow.

(b) Many of the farms which are not carrying sheep should be encouraged to stock with sheep.

(c) Mixed farming should be encouraged wherever possible and practicable.

(d) It would seem that, in a country like this which is so capable of producing a natural fuel in the shape of hay, the advisability of a return to the use of horses should be obvious to all.

(e) Better use of valuable idle land which has been alienated, and is convenient to railways.

(f) The removal of marginal farmers to land more profitable to develop. Argument in support of (e) and (f) to be found under "Freight."

(g) Wherever practicable, water should be provided. The lack of water makes mixed farming impossible.

Cash Purchases.

Assuming the acceptance of Part 1, the Plan to deal with Farmers' Debts, the paying of cash for stores, super., bags, etc., and the large nature of the orders, should result in lower prices being paid, so greatly reducing costs. At the same time, we wish to emphasise that we do not suggest, nor would be support that the Trustees in any way or degree enter into trading transactions.