SYNOPSES —PLANS SUBMITTED. THE THOMSON PLAN .SYNOPSIS.

Committee of control. One representative nominated from the following : —Government ,Primary Producers' Association, Wheat- growers, Agricultural Bank, Associated Banks , Machinery Merchants , General Merchants, Storekeepers, Chamber of commerce.

Three Trustees to be elected from above, or otherwise, one of whom to be nominated by the Government .

Division of Debts. First Division : All sums owing 1930/31 season including interest , increased overdrafts and hire of machinery, not exceeding and amount equal to 1s. per bushel of wheat marketed by settler ex 30/31 harvest. Over or underdrafts on this amount to be adjusted with the second Division debt. Second Division : All other debts owing other than: — (a) Mortgage debts and stock liens. (b) Debts excluded by mutual agreement . Government contribution to First Division .Government shall pay to the trustees an amount equal to 6d. per bushel or total wheat marketed by all settlers in the State ex 30/31 harvest and payable by over 13 years with an additional instalment to cover cost of administration and settlers defaults .Total contribution being equal 6-6/13d. per bushie on approximately 48,000,000 bushels — total amount £1,292,307 13s. 10d. in annual instalments of£92,307 13s. 10d.

Settlers' contribution to First Division .

  Settlers coming under the plan will pay from annual revenue of farm the same rate of contribution viz., 6-6/13ths of a penny on wheat marketed from 1930/31 crop. If a settler's total debt ( under both divisions ) is less than the rate of is . per bushel, he will receive from the trustees the further contributions as collected from the Government on his account less an equivalent to the 14th instalment.

Settlers not under the plan.

  As these settlers will have sustained a similar loss on production of wheat, they will receive from the trustees the Government's relative contribution as collected .

Interest.

  Interest is to be paid at the rate of 4 per cent . per annum by the Government and the settler on amounts assessed in the First Division .

Finance.

  It is suggested the funds necessary of the Government contribution be raised by a four tax £2 10s. per ton. Any surplus on the raising to be utilised towards administration expenses.
  In the event of the commonwealth Government paying a wheat bonus in terms that the State shall contribute thereto, the settler is to refund the equivalent of the State's contribution to the trustees, who shall abate the annual instalments payable by the State under the plan.
  Certificates are to issue to creditors for the instalments assessed. The Government's proportion to be issued separately with a view to negotiability.
  Subject to necessary provisos , creditors are to give settlers immunity from legal action .

Hopeless Accounts .

  Suitable provision is made in the plan to deal with these according to merit .

Security.

  A statutory lien over crops in favour of the trustees is provided , subject to the Agricultural Bank's statutory lien, together with a charge over the land as my be considered necessary by the trustees to rank after existing encumbrances. 

Second Division.

  Power is also given in the plan to the committee to give relief to settlers from the pressing demands of creditors by arrangement of their debts under this heading, after submitting proposals to creditors. Such debts shall be payable either subsequently to or concurrently with instalments under the first division, and the statutory security shall ensure for both classes of liabilities. The Government is not called upon to make contribution to second division liabilities.

Secured creditors.

  A secured creditor claiming payment under either divisions is expected to abate his security.

Rights of creditors. Appropriate provision is also made in the plan to deal with: — ( a) The earlier liquidation of unexpected rehabilitation . ( b) Conduct of settler becoming prejudicial to the interests of his creditors. ( c) Bankruptcy of settler.

Comment. Scheme not recommended for following reasons: —

  1. State is called upon to undertake an annual liability of £92,307 13s. 10d. for 14 years, which is not reasonable, and there is no surety that successive Government would unconditionally adhere to the commitment .
  2. Sections of creditors and of settlers would gain unduly at the expense of the general community in the former should more fully contribute to losses arising from excessive credit .
  3. The next fourteen (14) years, particularly in the near future, will bring their own financial problems for settlement .
  4. The plan will not enable a settlement of the settlers' most pressing difficulty, i.e, means of securing supplies for future operations, although Mr. Thomson has stated in evidence find no difficulty in carrying settlers on .
  5. IT does not provide sufficiently for the wheat-sheep farmer who grows little grain.
  6. The certificates would only be valuable as collateral security.
  7. Mortgagees would be compelled to postpone payment of interest arrears for any period up to 14 years unless they were prepared to release the equivalent from their security.

PLAN —NATIONALIST PARTY OF WESTERN AUSTRALIA. Control of plan:

  The plan to be controlled absolutely by three trustees to be appointed by Governor in council and to be free from political interference with right to make final and binding decisions in all cases. An advisory  of nine, with Government representative as chairman, to be drawn from following interests: — 
  Government, Agricultural Bank , Associated Bank, General Merchants, Storekeepers, Wheatgrowers, Union, Primary Producers' Association .

Admission to Plan:

  All wheat growers who voluntarily apply and whose debts come within the debt classification, may be admitted by the trustees .Upon making application all proceeding at law are automatically stayed. Applications must be in the hands of trustees on or before 30th September, 1931, or otherwise as may be determined .