Part 8

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not inspect the Oakabella estate. I looked upon the latter estate as a poor proposition.

9136. By Mr. VENN: Do you favour Australian experience as against English experience?-- Yes. We often tell new chums that they had better get experience before selecting land.

9137. By Mr. PAYNTER: When an applicant comes before you, do you take into account his experience as a farmer?-- Certainly.

(The witness retired.)

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HAROLD STEPHEN BICKFORD, Manager, Geo. Wills & Co., sworn and examined:

9138. By the CHAIRMAN: You have had a list of questions which the Commission would like answered sent to you. Will you be good enough to let us have your views?-- Owing to the majority of our settlers being practically beginners, with little experience, and that there have been some good men with experience on bad land, and some bad settlers who have been on good land; also that at the commencement of operations they have struck bad seasons, their positions are somewhat precarious, and if it had not been for the merchants in the first place, and subsequently the assistance rendered by the Government, a large percentage would have had to abandon their holdings. As it is, a large proportion are heavily in debt, and if it had not been for the present price realised for wheat, those who are wheat growers only, and they form a large percentage, could not have carried on, as they are up against large debts carrying interest. Should good seasons favour us, and a continuance of the present price for wheat for a few years, it is extremely probably that there are many farmers who have every prospect of getting out of debt and being firmly established. Since the Government and banks have controlled farmers, the position is immensely improved and it seems possible, with a continuance of the last two satisfactory seasons we have had, that the farming industry, with the assistance of the Government, should be put on a fairly substantial footing. Of course, in giving an opinion in this connection, one has, of necessity, to confine his remarks to what he individually knows. Our experience is that the smaller the farmer the better he has been able to withstand bad seasons. It is probably unnecessary to add, as the Commission well know, that to make a farm an absolute success and a safe investment for capital, a farmer has to understand up-to-date methods, and as soon as possible get on to the three-seasons principle, namely crop, fallow, and spell, and also as soon as it is possible for him to do so, to improve his holding with a view to getting sheep. This seems to be absolutely necessary, particularly where a farmer is cropping anything like a fair area, such as 500 or 600 acres. Credit also must be restricted, and farmers made to realise that before they buy goods they have to reasonably see their way to pay for same. In our experience, as mentioned above, the man should make a reasonable living at wheat growing, provided his first two years are not droughts, and he does not try to win through on the get-rich-quick principle. With regard to the second question, concerning out relation with farming clients, I might say that these, in the main, are satisfactory, but there is a section whose business morality is not of a high standard. They seem to be under a wrong impression, that a merchant is quite content to receive interest, whereas a merchant is just as desirous of receiving payment of his debts as any other organisation. In quite a number of instances it has been noticed that many farmers who have been materially financed by merchants, and who are now receiving assistance from the Industries Assistance Board, do not place such cash business with the merchant who assisted him in the past, but his orders are diverted to other avenues of trade with whom he has no responsibility. This is manifestly unfair and unjust. It is now recognised that in the past far too much credit, and too long credit, has been given by merchants, whilst it must be recognised that it is mainly through this credit that older settlers have won through and made a success. The later settlers, however, availed themselves too liberally of this credit and purchased on a far larger scale than their circumstances or prospects warranted. There has grown up a bad habit amongst some farmers of purchasing anything they can get credit for, whether it was essential or otherwise. Still, the fact cannot be disputed that had it not been for this credit, the agricultural areas could not have been settled and developed to the extent they have. Experience has shown that far too much capital has been put into farms which have not yielded good results. There has been many a farmer in the past who has expended his money on fencing his block before receiving much of a return from his soil. In my opinion fencing could be left very well alone until a later stage, as there are many districts where damage by straying cattle is very remote. Furthermore, much capital has been expended in gaining experience, which has been a heavy load for the man to carry. He may have won through satisfactorily, had good seasons prevailed, but once he struck a bad season then troubles have fallen thick and fast. When these bad seasons came the Government stepped in and rendered assistance, and although in the past there have been many errors in the administration of the Government assistance, the present system of granting assistance to farmers is much more satisfactory from many points of view. It will only be found that by persistent protracted education the farmer will in due time come to realise that the credit system is the most harmful in the interests of all concerned in the agricultural industry. The sooner the farmer realises this, the happier will be his relations with merchants. Your third question reads- "Have your collections from your farming clients during the past two years been satisfactory?" To that I would reply that, in view of our policy to restrict credit, the collections from farmers for the past two current years' requirements have been satisfactory, but it is not late enough to say that our collections have been satisfactory, taking into consideration the amount owing to us for the past season's requirements. Banks and insurance company mortgagees have paid for the putting in and taking off of the crop under schemes of their own, whereby the cost of same has been refunded to themselves, and that out of the first proceeds of the crop. Any balance remaining goes in reduction of old accounts. A certain amount has been paid in reduction of old accounts, and, generally speaking, the goods supplied during the last two years