conjunction would react severely in cases where perhaps overdraft accommodation may be costing up to 8 per cent. Further, retrospective effect cannot be considered equitable in this connection.

(2) It is considered that depressed laud values are likely to be temporary phase and therefore the present time is unsuitable in which to value securities. The proposal might be more favourably entertained when value becomes more stable.

(3) The scheme of distribution of crop proceeds leaves the secured creditors too far behind the others to give him any reasonable chance of collecting his dues.

(4) It is not just to creditors that they should write down debts owing by solvent settlers.

(5) £120-£160 per annum sustenance plus one-fifth crop proceeds is too generous a provision for settlers, where creditors are asked to write down 15 per cent. and 40 per cent. of their debts, and moreover the value of products for home maintenance should be taken into consideration.

(6) The probability of further revaluation of debts at end of five years after writing down at least the 15 per cent. and 40 per cent. would make the position of creditors precarious and would probably result in a complete drying up of further credit, which will be disastrous to the farming community.

(7) Representation on Advisory Council not equitably balanced.

PLAN — KATANNING CHAMBER OF COMERCE. Synopsis.

Control:

Administration of the plan to be directed from the Farmers' Debts Adjustment Act Department through District Board of Appeal.

District Boards:

To adjudicate upon the right of the mortgagee or other secured creditor to repossess his security, Board to consist of a Magistrate, and a representative from both Business and Producer interests. A Board to be provided for each proclaimed district.

Central Board: To adjudicate on appeals from decisions of District Boards and to be composed of a Judge or Magistrate and a representative from Associated Banks, Chamber of Commerce, Primary Producers and Country Storekeepers.

Classification of settlers :

Class " A" and "B" suffering temporary or moderate difficulty and who should right themselves without any special assistance.

Class "C."—More involved cases which require a term of years to recover.

Class "D."—Severely involved cases where a general writing down of liabilities is essential to recovery.

Class "E." —Bad cases—hopelessly involved, unfitted for life of a producer.

Adjustments: Class "A" and "B."—These require only protection from dispossession .

Class "C."— Debts at 1/3/31 to be funded for term at discretion of District Board, proceeds 31/32 harvest to be applied :

(a) Provision for continuing operations .

(b) Surplus to be used for reduction of funded debts as at 1/3/31 .

Class "D."—Debts to be written down sufficient to facilitate profitable farming operations. Debts secured on land to be dealt with first. Stock debts to be valued and excess liability treated as unsecured .

Proportion of sheep and wool proceeds, as determined by District Board, to be applied for the purpose of carrying on operations. Unsecured debts to be written down in 50 per cent. greater proportion than secured debt.

Alternatively, debts secured on land to be temporarily written down, but ascertained excess to be revived at end of the period fixed and permanent adjustment then made. Unsecured debt to be permanently written down to the same extent.

Interest.—In cases "C" and "D" interest shall be fixed at not exceeding 4 per cent. unsecured and not exceeding 5 per cent. secured creditors.

Class "E."—No action, as further assistance will only involve further loss.

Local Control: Local control to be as complete as possible, and if a competent accountant is available in any centre he should (subject to approval of the Board) be appointed as Receiver or Trustee.

General Relief: Re-valuation of land and land tax. No taxation of farm land in reasonable use. Railway freight on wool to be reviewed. Registration fees on liens to be reduced. Hire purchase agreements to receive attention. Parliamentary costs and Civil Service costs in higher branches to be reduced by 33 1/3 per cent. Vermin and Road Board rates to be reduced.

Tariff: That through the State Parliament, Federal members and various public organisations, pressure be exerted upon Federal Government to give relief in the tariff on farmers' requirements.

Comment. Your Commissioners cannot recommend this plan. The Commissioners wish to congratulate the Katanning Chamber of Commerce on the spirit shown by them in their endeavour to grapple with the problems.

The faults of the plan appear to be that the administration would be very difficult and expensive, for many tribunals would be created. The expense of the inquiries and legislation would be an added burden to the farmers.

Your Commissioners also consider that the element of compulsion introduced into the plan for writing down debts and interest rates would not be in the best interest of the farmer. Such principle is contrary to the one advocated in your Commissioners' report.

WHEATGROWERS' UNION OF WESTERN AUSTRALIA.

Kellerberrin Zone Council.

Plan—Synopsis.

Security of Tenure:

That a tribunal be created which will include a member of the Judiciary, to hear appeals against the action of mortgagees in dispossessing settlers.

Writing Down of Debts: That the tribunal also receive applications from settlers for writing down debts, take evidence thereon and make decisions.

Reduction of Interest Charges: That legislation be introduced to reduce interest on mortgages and stock liens by 25%, with a maximum rate of 4%.

Insurance: That a system of farm insurance be introduced to reduce present charges by 75%.

Cornsacks: That the Wheat Pool arrange supply of all sacks to ensure certainty of supply and uniform price.

Road Boards: That Road Boards—

(a) Reduce rating.

(b) Charge no vehicle license to farmers, where Road Board rates are paid.

(c) Vermin tax to be reduced.