19

a—9a,

On present values of produce, what may be assumed to be a payable proposition may, through a downward turn in prices, become non-payable. The fluctuations of the market have a serious effect on soldier settlers who are paying rent and interest on the whole capital employed in their operations. The chances are that, based on a maximum revenue, their holdings will just provide a living surplus and no more, and when failure in any respect occurs they get behind and have no chance of recuperation. They art; different from settlers long established or who had capital of their own — these can stand up to a bad year ; but the average soldier settler has no reserve fund yet, and it is this factor in relation to settlement effected at peak prices that has contributed towards failure. When we consider what effect the slump in produce had on old-established civilian settlers, and compare their positions with the soldier settler just starting, there is no reason for wonder that the latter have been forced to seek relief. It was a difficult problem to satisfactorily establish men on land propositions who had little if any capital, without or with only a limited degree of experience, and under special conditions and circumstances that demanded maximum results in order to provide overhead charges and a reasonable, living. Referring to advances made under section 2 for the purchase of properties, these have been scheduled and made the subject for special report as the occasion arose. It has been found that almost invariably the men who were assisted into good places, no matter if comparatively dear, have been able to meet their engagements. The failures are those who went into third-class places at high prices. They were mostly men without experience. This was in. evidence from the start, as, had they known their job, they would never have been where thoy are. Quite a number of settlers are on places that, owing to the state of buildings, fences, and the unproductive nature of the land, make their chances of success quite impossible. Some of these are occupied by men who are honestly doing their best, and would succeed if placed in decent places. It is suggested that where a settler has proved to bo persevering and has only failed through, adverse conditions, that he be given an opportunity to continue his farm operations on another selection. Failure to utilize the productive capabilities of the holding is not only a personal loss, but is also a national loss, and it is suggested that the only remedy is an alteration in the regulations governing advances to soldier settlers. Closer supervision necessary regarding depreciation of securities. That all building loading be treated as advances repayable by a sinking fund of 1 per cent. Draw attention to the fact that those settlers who purchased under section 2 of the Discharged Soldiers Settlement Act, 1917, obtained more financial assistance than selectors of settlement lands, as the former usually had houses and fences on the place when purchased and obtained £750 for stock, while the latter had to build his house, erect fences, &c, and purchase his stock out of the £750 advance. Suggest that the disposal of abandoned properties be expedited. "Extended Report. The price paid for land for subdivision has no doubt been, almost without exception, too high. Properties which in themselves may have been capable of returning fair interest on the capital value were, under subdivision, loaded with the attendant expenses of roading, survey, and incidental charges which frequently added £1 per acre to original cost. The loading on eighteen estates purchased, total area 40,915 acres, was £35,389. fn addition to this, settlers had to expend on an average £5 per acre on buildings and fencing. The section areas were in many cases too small, and in attempting to attain a degree of uniformity in the total capital value of each section the surveys were not in keeping with the topographical conditions and utility requirements. It thus happened that in the process of subdivision, properties which as going concerns were worth the price paid for them were discounted in value through, subdivision. There are contingent losses in the period of establishment on prairie land which may quite fairly be treated as capital expenditure, and in purchasing properties for subdivision those contingencies should be provided for in viewing the possibilities of any holding. Properties bought for cutting up were not generally in good rotation, being mostly in worn-out pasture, very often bad with couch, thistles, and other weeds. It thus followed that a settler invariably lost the first year's rent for a start, more especially when lands were balloted for at a late seasonal date. By the time a settler got his fencing and buildings up and purchased a team of horses and requisite plant, one year had gone. Then, if, as mentioned, the land was all out of rotation, the chances were that the agricultural operations would not be successful until the second or third ploughing. Meantime rent, interest, and charges were going on and eating up available capital. The general conditions prevailing in the years of 1919-22 were all against the settlers. The following were instances particularly affecting the position : (1) Land was at the peak price ; (2) fencing-material dear ; (3) building-material dear and labour high ; (4) farm implements and harness dear ; (5) dairy cattle and sheep abnormally high in value ; (6) chaff and oats scarce and dear ; (7) seeds and manures dear. Then, to make matters worse, all produce with the exception of wheat slumped in price in 1920-21. The lack of capital also seriously affected many settlers. The advance by the Crown, limited to £750, was quite inadequate to meet the requirements under the above abnormal conditions. In some cases the lessees overloaded their holdings with buildings at the expense of capital which would have been more profitably expended in reproductive assets ; but, generally speaking, the improvements effected arc only such as were necessary.