paid to the class of seed. Many of the disasters which have occurred have been due to the poor seed and to the seed not being suitable for the district in which it is sown. We find men in districts liable to rust sowing wheat which is susceptible to rust, and so on. We proposed a system, which is now in working order this year, and have induced out branch managers to take it on, whereby this difficulty will be largely overcome, we hope. I have also been in touch with Mr. Sutton and Mr. Deane Hammond over the matter. The scheme was published in the West Australian, and came at an opportune time. The tendency has been to look down upon our State experimental farms. In a country like this, where the geographical difficulties are so great, and so many varieties of seed are necessary, it is essential that a great deal of attention should be devoted to this question. Each district requires a different class of wheat, and the business of allocating the right wheats to the difference districts is a very important one. Having secured these wheats, the Government should produce these varieties in sufficient quantities for the farmers, and each variety should be carefully selected each year. We have Mr. Sutton, a man of great knowledge on the question, but we have done very little in the way of pure seed for farmers. The extra bushel or two that good seed would give to the farmers is going to make all the difference between profit and loss when prices become normal. At the present time we are really getting famine prices for our produce. Our difficulty has been that Mr. Sutton's wheat was practically sold out before you could get supplies for our own men. The Government might well foster this scheme, and should give Mr. Sutton adequate skilled assistance for wheat selection and supervision of the work on farms. Large quantities of pure selected wheat should be produced and supplied at market rates. This year seed has been supplied at 5s. a bushel. This is a payable rate to the Government, and no farmer has complained of it. I think the scheme is an original one, and was as I will detail. It is no use supplying the farmer with the whole of his seed wheat from the State farm, with which to grow his main crop. We conceived the idea of applying the idea of merino sheep selection to wheat. Every year the farmer should get two or three bags of seed wheat from the State farm and grow that on a separate plot. This would be the wheat which was nominated by Mr. Sutton as being suitable for that particular district. The farmer would grow these two or three bags on say, eight acres of clean land, and this would give his seed for the following year. He would then repeat that performance every year.

8926. By Mr. PAYNTER: Do you mean that he buys another three bags every year?-- yes. He buys this amount of seed every year and Mr. Sutton keeps on selecting it. He grows selected wheat this year, selects from that, and grows selected wheat next year, and so on. In Victoria at the present time, as the result of selection, they have two grades of Federation, namely improved Federation, and the common or garden Federation. I have proved that here by importing selected wheats from New South Wales and distributing them. The system of stud plots is important for the reason that it is inexpensive. It only costs the farmer £2 or £3 for his seed every year, and he acclimatises his seed on his own farm before he sows it. The resultant crop on the stud plot might not be too prolific the first year, but it provides the seed for the following year, which would improve tremendously, for it would have been acclimatised.

8927. What about the difficulty of the sowing of the seed on an entirely different kind of soil?-- That could be overcome. If seed is obtained from rich land and grown on poor land, it will be poor seed, but if it is taken off indifferent land and grown on good land, the reverse will happen. The main objective is to supply pure selected seed wheat. In the minds of many farmers any old thing will do for seed. What proportion of farmers would know how to grade their own wheat, or take the trouble to do so? If the farmers once realize the importance of having first class selected wheat suitable for their district, it will make a tremendous difference to wheat growing here. Mr. Richardson's scheme was to get men to select wheat on their own land, and grow that selected wheat on a certain plot. There is not one man in 500 who knows anything about the selection of wheat, which is highly specialised job. In Canada only the very best men are used on that work. I am satisfied that Mr. Richardson's scheme is an admirable one, but Western Australian farmers are not in the position at the present time to carry it out. They are not far enough advanced. Mr. Sutton is an extremely valuable man, and no one knows more about the work of breeding wheat than he does. He ought to be encouraged and given assistance to carry it on. If we can get good seed wheat and induce the farmers to use it, it will do more for those in the Eastern districts than anything else. The idea has never been applied in this country. Another thing that is desirable is to ensure that the farmers will get the wheat that they are wanting. If a farmer orders a certain variety he should be certain of getting it. This may not be possible when the matter is left to outsiders. There are many admirable men who are doing fine work in the way of producing seed, but there are also others who are turning out seed which is not any better than the farmer himself has got, and charging 10s. a bushel, because he regards it as something superfine. The supply of pure seed should be controlled by the State.

8928. By the CHAIRMAN: What is the policy of the bank with regard to the housing of its farmer clients?-- We have no policy.

8929. We have seen some very poor homes on holdings controlled by your bank, and also on those under the Industries Assistance Board?-- We always try to meet those people. It is a matter for the man himself. One of the last things that the farmer seems to consider is that of building a decent habitation. That is now, however, being overcome. We cannot dictate to a man as to what sort of house he shall live in. The banks are always careful to meet their clients' needs in these matters.

8930. Do you think that bad housing makes for the best conditions on the land?-- No. The farmer usually wants to clear his land and get his sheep, wire-net his property, and spend every shilling he can to make his place productive. When he has done that he thinks of building a house for his wife. The banks have no control over the matter. While it is desirable that people should have a decent habitation to live in, the banks have no control over the matter, but are always willing to find what is wanted in that respect if the proposition is a reasonable one. The banks find money for anything that