Mr. W. Paterson, continued.

861. On the agricultural lands?—Yes; whether on conditional purchases, homestead farms, or freehold properties; to improve them.

862. You have nothing to do with leaseholds?—No.

863. By Hon. R. G. Burges: You take it on as security?—We have only done it once.

864. It is allowed by the Act, though?—Yes.

865. By the Chairman: Your interests as Manager of the Agricultural Bank are entirely confined to agricultural tenants and those on freehold land?—On any lands.

866. You make no advances on leasehold properties?—No.

867. You have probably read about the rabbit invasion of this State?—Yes.

868. Supposing that rabbits increased in this State as they have in other parts of Australia, they would in time teach your clients?—I presume they would.

869. What would be the effect of the rabbit invasion on your clients?—We anticipate that rabbits will be here shortly.

870. Generally speaking, what would be the general effect; would it be advantageous or prejudicial?—It would be very injurious and costly.

871. I suppose you, as the nominal holder of these securities, have looked with a considerable amount of interest on this reported invasion?—I have, indeed.

872. Do you think it will affect the value of your securities?—It must affect them; it must do so.

873. Do you consider you would have to alter on the terms on which you lend money, that is as regards insisting on a particular kind of fence being put up?—Well, we cannot insist on anything except a sheep-proof fence. We cannot insist on a rabbit-proof fence. The only way to make people do it is not to grant them anything unless they do it; but at the present time I am not asking them to put up a sheep-proof fence; I did some time ago, but now I ask them to put up a wire-proof fence to prevent large stock getting in, so that they will be prepared to put up a fence to keep out the rabbits in the future.

874. You have told them that?—Yes; it is not required that they should go to unnecessary expense just now.

875. On account of the incursion of rabbits?—Yes.

876. By Hon. R. G. Burges: What use would that be to stop rabbits, just fencing in the holdings? You are dealing now with the properties held by the bank?—I am only looking to that, and nothing else; the securities for which I am responsible.

877. By the Chairman: You deal with a fair sample of the small holders of the State?—Yes.

878. You realise that if the rabbits are here, each individual will have to fence in his holding with a rabbit-proof fence to protect himself?—Yes; but adjoining holders could arrange to fence together.

879. Therefore, it is no good putting up a sheep-proof fence, while later on they would have to put up a rabbit-proof fence?—I would not ask them.

880. By Hon. R. G. Burges: What about the roads and the subdivisions? What use would it be fencing, when there are roads or unoccupied country?—I presume you want to know how the rabbit invasion will affect the securities held by the bank.

881. The Chairman: Yes.

882. By Mr. Loton: In the action you are taking now, you are not insisting on a sheep-proof fence being erected, with a view probably to a rabbit-proof fence being put up by-and-bye?—Yes.

883. Then you are satisfied, or you expect, the rabbits are coming?—Yes; I feel sure they are coming, if I can believe the reports, but I have had no ocular demonstration.

884. From what you hear and know, you are satisfied they are coming?—I feel sure they are coming.

885. By Hon. R. G. Burges: Do you not think it hard on settlers that, through the neglect of the Government, they should have to go to this expense, because these conditions were not known when the holders took up the land; do you not think it is very hard?—I cannot fix the neglect on the Government myself, from what I know. There may have been neglect, but I do not know it; it has not come before me.

886. By the Chairman: Shall I put it in this way, Mr. Burges; it will be very great hardship for these small holders to have to erect this rabbit-proof fencing?—It certainly will. I have just run out, as well as I could this morning, what it would cost to fence the properties which we hold.

887. Let me put it to you in this way; With regard to the properties you now have securities over, what will it cost to fence them with rabbit-proof fencing?—The price was given to me of what it cost in other parts to erect rabbit-proof fences, and I worked out the cost at about £160,000.

888. On what price did you work out the calculation per mile?—They put down 17 gauge wire.

889. Is it this: 42 inches width of wire, 1½ inch mesh, and 17 gauge?—It was 1¼ inch, 17 gauge and 42 inches wide.

890. By Mr. Richardson: How much would it cost per mile?—It takes about 1 ton 12cwt.

891. By the Chairman: How much would the cost be per mile?—Something like £50 odd per mile.

892. By Mr. Loton: Has that calculation been made on the supposition that each separate holding would have to be fenced?—No; we have given a fair margin for that.