THOMAS ERNEST FIELD, Manager of Elder, Shenton Co., Ltd, sworn and examined:

9232. By the CHAIRMAN: Do you regard the position of agriculture in this State as Satisfactory or otherwise?—Looking at it from the point of view of the development of agriculture, the it is highly satisfactory. I do not think any other State in Australia during a similar period and under similar conditions has shown anything like the development that has taken place in this State, say, during the past 10 years. It has been markedly wonderful that the development could have taken place that has been. As regards the position of agriculture from a financial point of view, I may not be able to give such a definite opinion of progress, but what we have to remember is that, so far as the development which has taken place goes, it has quite sure the financial position of the development in other States has been no worse during the pioneering time than it has been in this State. That is, that the pioneers in the other States were up against the same trails and difficulties as we have been experiencing here, and they could not show at the age of their development as compared with the age in this State, any better position than we can show here.

9233. Are your relation with your farming clients satisfactory, from a merchant's point of view ? —Generally speaking, our relations with our farming clients are satisfactory. There are some exceptions, but speaking as a general rule, we are quite satisfied with the position. seasons, have got behind in their accounts, and we have had to extend payment practically from the time the drought year visited this State, but since 1915 we have been able to collect a proportion of those old debts and again this harvest we are collecting a further proportion, and given a normal season, we look to practically clearing up the bulk of the old accounts out of the next harvest. That being so, I do not think we could say otherwise than that the position of our accounts can he stated as satisfactory. You ask "Have your collections from your farming clients during the past two years been satisfactory?" They have been very satisfactory during the past two years, possibly due to the fact that we had to be more strict in our business; but the fact remains that during the past two years the collections of our accounts has been very satisfactory. At that point I would like to say that one item has come before me particularly during the past five months. In that period we have held a large number of clearing sales throughout the state, and it has been simply amazing the amount of absolute cash collected at those sales. We have had numerous instances where 75 or 80 per cent. of the total proceeds has been paid to us in cash at the farm where the sales have held. That has been one of the most extraordinary positions of the last five months. It shows that there must be a lot more cash among the farming community than people believe because these clearing sales are principally of implement and horses and are bought by farmers, not on the grazing side, and the farming community has been in a position to pay cash for the purchase.

9234. In what country districts do you do business?—Our operations practically extend through the whole of the agricultural areas, but I would like to say that we do not, as a general rule, push our business east of Kellerberrin. We have a good many accounts east of Kellerberrin, but Kellerberrin we look on as our dividing line between business which is taken in the ordinary course and business that has to be specially considered.

9235. Which of the districts show the best results, and can you assign any reason for the difference?—Our best trading results are shown in the districts surrounding Northam, York, Beverley, and Moora, and we assign the reason for that to the fact that the farmers in those districts have, as a rule, been longer settled and are practically getting out of the pioneering stage. There is also another reason, that the farmers in those districts generally are caring on a larger proportion of mixed farming rather than relying on wheat alone for their business, and it is a larger proportion of mixed farming rather than relying on wheat alone for their business, and it is a recognised fact that mixed farming is of great assistance from a financial of view.

9236. Are any of your clients who grow wheat only showing satisfactory progress? —We have a number of clients whose business is confined to wheat. They may run a few pigs, but they have no sheep. The majority of our old outstanding accounts can probably be assigned to that class of farming. For this reason, when the drought visited this state, these farmers had nothing else to fall back upon. Their income from wheat farming can be profitably carried out, we have accounts in the Dowerin districts that in 1913 where very far behind as regards their liability to the general trading concerns of the State. I will give you two instances. There was one client who in March, 1912. had to meet his creditors. He then owed a trading house £1,500. He was allowed to carry on. In March, 1913, he was able, after paying his expenses, to hand over £250 to his creditors for division. In March, 1914, he was able to pay up his back interest, and out of a sum of £320, the cost of his fodder and seed wheat, he was able to clear all except £80. In march, 1917, this year, he finds he has cleaned up all his current expenses and able to hand over £200 for division amongst his old creditors. If he has a normal season this year he will about be able to clean up the balance of his old creditors' accounts. He has confidence he can do that himself, and having gone through the figures carefully I am sure that is the correct position. Another farmer in the same district who, during the same period, March, 1912, owed slightly more than £1,500. He has been able to reduce his old liabilities, a little more in this particular case, but the accounts are worked much on the same lines, and he also will be quite free, given a normal harvest this year. That, to my hand, absolutely proves that wheat farming on its own is able to pay and give a farmer a good living if profitably conducted.

9237 Are the two men you speak of known as good farmers?— Good practical farmers working their farms themselves and employing labour at seeding and harvest.

9238. Can you make any suggestions which this commission might place before the government to improve the state of the agriculture industry?