Part 8

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have been paid for. Therefore, while we have been paid for goods supplied during the last two years, we are not able to say that up to the present the collection of old accounts from farmers, incurred prior to the last two years, have as yet been satisfactory. I understand that of merchants' accounts lodged with the Industries Assistance Board, there is an amount approximating half a million pounds, and until the Government are in a position to repay on account of clients a larger portion of this amount, we cannot say that our collections have altogether been as satisfactory as desired. Farmers who do not receive assistance from the board, or were not under banks, of course, have paid up satisfactorily.

We would like to say that the losses we contemplated making are still staring us in the face, and a merchant needs very heavy reserves to meet writings off on account of men abandoning their holdings. We cannot share the opinion expressed by some people who view the position of the farmers with alarm. There is a section of the community who will never make good on the land, despite the fact that they have been assisted from either the Government, bank, or a merchant, and the sooner it is realised that those men should be wound up, and their places filled by others able to make good, the better it will be for the industry. In a general sense, however, I do not think that the condition of the farmers to-day is anything like as bad as it was two years ago; in other words, the position of the farming community, according to our view of the position, has materially improved from the financial point of view.

Considering the abnormal cost of putting in the 1916 crop, and that the farmers have only received 2s. 6d. from the pool for the 1916-17 crop, it is creditable that the farmers have been able to make good and we have hopes that when the dividends are paid out of the two pools a material reduction of the past indebtedness will be made. With regard to the system of compulsion instituted by the Industries Assistance Board and the Banks, in managing their clients' cropping accounts, I consider that has been very beneficial for the farmers. Replying to your next question as to the country districts in which we do business, I may say that this is best indicated by the agents we have at various centres throughout the agricultural industry, and you will note from the list I have, these centres extend from Geraldton to Mount Barker, along the Midland line as far as Ballidu and round the loop line as far as Merredin, embracing practically the whole of the wheat-growing area.

Your next question asks which of the districts shows the best results and whether I can assign any reason for the difference. I presume this question refers to a counting house point of view. It is impossible to show which districts show up the best until payments are made. I might venture an opinion that in what has been known as the dry areas, from advices we have received, farmers there certainly have improved their financial position during the last two years.

9139. Are any of your clients, who are growing wheat only, showing satisfactory results?- Yes. There are many instances where the men have been able to not only pay for their current requirements, but have had sufficient in hand up to date out of the pools to make a slight reduction on their past indebtedness, and when the final dividend is paid out of the pool there will be a material reduction make in their old accounts. I cannot give you any instances from memory, but I know of a number of farmers who are practical men. These men are on fair ground and farm systematically. The practical farmer, however, should not devote the whole of his energies to wheat growing. Still the fact remains that there are men who have made good on wheat only.

Your next question reads, "Can you make any suggestions which this Commission might place before the Government to improve the state of the agricultural industry?" To that I would reply that in our opinion the Government should as soon as possible get the clients off the Industries Assistance Board by paying the merchants the debts due by their clients. It would then be possible for the merchants to again trade as heretofore, but in a more conservative manner in the question of terms and supplies, as in our opinion the farmer who has been able to pull himself level in two years good seasons, is a worthy farmer and would consider it more satisfactory to be able to go direct to his merchant instead of through the board. In this way we think the board would soon be able to cull out those farmers who are practically living on the amount advanced in the shape of wages, and, of course, the sooner those men who are showing no improvement with the Government assistance are taken off the land, and someone else given a chance, the better for the industry.

It should be an easy matter for the Government to go through and decide which men are good farmers and must eventually win through, free these men from the board by paying their debts to the merchants. The balance can then be dealt with by a smaller staff and possibly greater attention given to them to make them live up to what the Government expects them to do for the money they are paying. It is not possible at the present time for the Government to lend out money with the idea of getting the man to improve his holding for carrying sheep, but this is a question which must he brought up before the Government when the price of wire and wire netting permits. Good roads in the district are also essential to the farmers' welfare, and generally speaking, if the Government will deal with his interest bill and land rent sympathetically, the merchant can be relied upon to assist the industry with capital in the shape of goods, etc., until such times as the farmer is fairly established on his feet.

I would supplement those remarks by saying that, not being directly interested in sheep and cattle, we can only confine our remarks to such supplies as are necessary for the keeping of sheep and cattle, that is wire and wire netting. No sane man would attempt to do any fencing at the present time, because of the abnormally high prices. When normal prices are ruling it would then be advisable for as many as can finance such improvements to construct wire fences, or netting fences, so as to enable them to keep a number of sheep on their land.

9140. What is your opinion of the Agricultural Bank?- Our experience has shown us that, as at present administered, it has been of material advantage and assistance to the men on the land. I think it would be better if the bank were freed from political control.