II. ECONOMIC CONDITIONS AFFECTING AGRICULTURE.

PRINCIPAL INDUSTRIES OF THE VARIOUS STATES.

Mr. William C. Downs, formerly American commercial attaché at Melbourne, effectively reviews the industries of the various States of the Commonwealth, as follows:

Queensland is preeminently the grazing State of Australia, the number of cattle being equal to that of all the rest of Australia put together. This has led to the establishment of important meat-freezing plants at Townsville and Brisbane. The butter and cheese making industry is also well developed, although meat is the prime consideration of the herders. In its number of sheep it is second only to New South Wales, and it is first in the Commonwealth in the breeding of horses. The tropical coast lands are admirably suited to the cultivation of sugar cane, producing nearly all that is required for the consumption of the Commonwealth. Its forests yield one-quarter of all the timber cut and sawed in the country, and its fruits are abundant, varied, and excellent in quality. In mining it ranks third among the States of the Commonwealth, producing annually more than $14,000,000 worth of gold, copper, tin, and coal. New South Wales stands foremost in the raising of sheep and second only to Queensland in cattle. The earlier settlement of the State and the division of land into smaller parcels, however, have encouraged the small breeder and led to the more general development of the dairying industry, so that, with only two-fifths of Queensland's number of cattle, it produces 84,400,000 pounds of butter and cheese, against 45,700,000 pounds for the northern State. The western slopes of the mountains have also proved admirably adapted for the growing of wheat, and in normal times some 38,000,000 bushels are marketed annually. Rich in gold, silver, tin, and copper mines though it is, its prominence as the chief mining State of the Commonwealth is due largely to the magnificent coal fields of Newcastle, with an annual output worth $24,000,000. The recent establishment at that port of a $7,000,000 steel plant will add greatly to the importance of New South Wales as a manufacturing State.

Victoria ranks next in the pastoral industry and has intensified its production by closer settlement. With only 60 per cent as many cattle as New South Wales, it manufactures nearly as much butter and cheese, namely, 78,300,000 pounds. Its fertile fields also yield 32,000,000 bushels of wheat. Gold is the chief mineral produced. In fact, the rapid settlement of the State was due to the discovery of the rich gold fields of Bendigo and Ballarat, and again it was the necessity of finding employment for the surplus influx of unsuccessful fortune seekers that led to the inauguration of the protective tariff policy in Victoria and laid the foundations of its preemience as the chief manufacturing State of Australia.

South Australia's production is mostly agricultural, its yield of wheat and barley being more per capita than that of either New South Wales or Victoria. Olive and almond groves are features of the landscape around Adelaide, and, in general, the farming is of an intensive kind, conducted on smaller holdings than in the other States. The pastoral industry is also well developed, more than 4,000,000 sheep grazing over the broad ranges of the State. Although the total number of its cattle is not one-third that of Victoria, nearly half of them are fine dairy stock. In all the States of Australia fine grapes are grown, but South Australia can truly be called the "Vineyard State," producing 2,700,000 gallons of wine out of the total of 4,700,000 produced in the entire Commonwealth.

In the northwestern part of the continent, in Western Australia, cattle is king. The meat-packing industry, however, is not greatly developed, and the cattle are shipped on the hoof to Java, the Far East, and the Philippines. The pearl

fisheries of Broome, in this State, furnish a considerable increment to the revenues. They are the most important in Australia, employing 380 boats and producing some $1,500,000 worth of pearl shell annually. Farther south in the State the conditions favorable to sheep grazing are again found, the flocks of Western Australia rivaling those of South Australia in size. Here also agriculture has received attention with gratifying results, a total of 13,000,000 bushels of wheat having been produced in 1913. The forests of the lower corner have already been mentioned. From them are derived 218,000,000 feet out of the total of 683,000,000 cut and sawed in the Commonwealth. It is, however, on account of its gold production that Western Australia is best known, the worldfamous Coolgardie region supplying 60 per cent of the total of the precious metal drawn from the rich deposits of Australia, the third greatest gold-producing country in the world. The lack of water on these eastern gold fields has led to heavy expenditures on the part of the Government in the sinking of artesian wells and the construction of reservoirs, pipe lines, and pumping stations.

Tasmania may be called the "orchard of Australia." Although Victoria has 67,000 acres devoted to orchards and fruit gardens, Tasmania, with only onefourth the total area, gives up 32,000 acres for that purpose and markets 1,925,000 bushels of apples per year, valued at $1,959,000. The other principal sources of wealth of the island State are its well-known copper and tin mines and its valuable hardwoods. It also has the advantage of abundant water power convenient to its largest cities, which, when utilized by hydroelectric plants, as is now contemplated, may greatly stimulate the establishment of manufacturing enterprises within its borders.

The Northern Territory has little economic importance at this time. It is essentially a pastoral region, suitable chiefly (in fact, almost solely) for operations by large companies capable of opening up the country without the need of immediate returns. In 1910 the imports and exports of this Territory, including all business done with the various Australian States, amounted to about $260,000 and $1,350,000, respectively. At the end of 1915 there were in existence 231 pastoral leases covering more than 64,000,000 acres. Three firms the Bovril Estates, Vestes Bros., and J. Bradshaw-have under lease a total of 26,000 square miles, equal to the area of England, for which they pay an annual rental of $13,000. In December, 1914, the Territory had 414,558 cattle, 70,200 sheep, and 21,985 horses, and only 391 acres under crop-a proportion of a little more than 1 acre in every 1,000,000 acres.

The following table shows the 1914-15 imports and exports of Australia by States, giving an idea of their relative economic importance:

IMPORTANCE OF FARMING IN PRODUCTION OF WEALTH.

The approximate value of the output of the various Australian industries during the year 1915 was $1,224,336,000, distributed as follows: Agricultural, $358,996,000; pastoral, $319,276,000; dairy, poultry, and bee farming, $102,936,000; forestry and fisheries, $28,113,000; mining, $108,995,000; manufacturing, value added in process of manufacture, $306,020,000. The aggregate wealth produc

tion of Australia in 1908 was $824,785,000; in 1910, $938,670,000; in 1913, $1,080,224,000; and in 1914, $1,047,425,000.

As these figures indicate, the industries of the land are by far the most important source of Australia's wealth. Owing to their significance in connection with the market for farm machinery, a detailed review of Australia's agricultural and pastoral industries. has been reserved for subsequent chapters.

MANUFACTURING VERSUS AGRICULTURE.

The remarkable industrial development of Australia is the result. of accident rather than natural conditions. The country, with its enormous expanses of land suitable for farming, would doubtless have profited more if its population had become more largely engaged in the industries of the soil instead of taking up manufacturing. The discovery of gold, however, attracted a population essentially industrial in character. Coming to Australia, as it did at the beginning of the second half of the last century, in too great numbers, it failed in many cases to find employment or opportunity in connection with the development of mining. This surplus of labor, showing a disinclination to offer itself for agricultural work, and remaining unemployed in the cities, created an acute problem for the Government. With a view to remedying the situation, Victoria, and to a less extent New South Wales, finally determined upon a policy of industrial encouragement and protection. By means of the tariff, bonuses, and bounties, a great impetus was given to the local manufacture of many articles that had previously been extensively imported. While the results have doubtless justified, in certain instances, the favor thus extended to manufacturing, it is contended by some that this has seriously retarded the growth of the more natural industries of the country, particularly agriculture and mining. There is a feeling that the high cost of materials may at times prove a serious impediment to the active working of the mines, and may also affect, even more adversely, the progress of agriculture. The high cost of industrial production may conceivably impair the ability of the Australian farmers to compete in foreign markets with the farmers of other countries, who are able to acquire machinery and other supplies on a more favorable economic basis.

FOREIGN TRADE.

The following table shows the foreign trade of the Commonwealth in recent years:

1916-17

Imports...

Exports.

$367, 243, 454 418, 618, 466

785, 861,920

Of the $87,000,000 decrease in the value of the exports during 1914-15, as compared with 1913, about $65,000,000 was mainly due

to the dry season throughout the Commonwealth. From this cause also the exports of wheat and flour were reduced by about $40,000,000, and of butter by $5,000,000. A reduction of $20,000,000 was experienced in wool exports; this was the joint result of the war and the drought, for although the clip was much smaller by reason of the latter condition, the dislocation of the market, due to the war, was responsible for the holding over of a considerable quantity of wool until the next year. The influence of the war in restricting exports was most pronounced with regard to metals and coal, which, together, were nearly $30,000,000 below 1913, while skins and tallow declined by $12,000,000. On the other hand, the war was responsible for increased exports of meats, leather, and horses, amounting to more than $22,500,000.

The favorable effect of the very good crops of 1915-16 and 1916-17 and the good prices obtained for agricultural and pastoral produce, as a result of the war, is reflected in the increased exports of the past two years. The balance of trade in favor of Australia in 1916-17 affords conclusive proof of the present satisfactory economic condition of the country.

IMPORTS AND THEIR ORIGIN.

The following table gives, by principal sources, a comparison of the imports of Australia in 1915-16 with those in 1908, showing the gratifying growth of exports from the United States to the Commonwealth:

In 1915-16 the United States contributed to Australia's imports more than four times as much as any other country except the United Kingdom. Among the imports from the United States during 1915-16 there were large quantities of wheat, butter, oats, hay, and chaff. This was a consequence of the 1914-15 drought and indicates its severity, since Australia exports these articles in large quantities in normal seasons. Canada, India, New Zealand, France, Japan, and Switzerland are large exporters of goods to Australia. In 1913 Germany contributed nearly 10 per cent to the Commonwealth's imports. Japan has quadrupled its exports to that country since 1908.

EXPORTS AND THEIR DESTINATION.

The following table shows the direction of the Commonwealth's exports, the increase since 1908, and the remarkable growth of the exports to the United States in recent years. American purchases of

Australian products have increased since 1908 to a greater degree than Australian purchases in the United States:

1915-16.

Percent

age of total.

100

Before the war, France, Germany, and Belgium purchased more goods from Australia than the United States, but in 1915-16 the United States purchased nearly five times as much in Australia as any other country except the United Kingdom. The principal goods shipped to the United States are hides and skins, wool, zinc concentrates, and other metals. It should be noted that Australia's exports to the United States in 1915-16 included about $37,500,000 of specie and bullion.

RAILWAY DEVELOPMENT AND ITS EFFECT ON AGRICULTURE.

At the end of June, 1915, Australia had 22,263 miles of railways in operation, as compared with 13,551 miles in 1900 and 18,012 miles in 1910. Of the total of 1915, the various governments owned and controlled 20,062 miles. In the eastern, southeastern, and southern parts of Australia there are now many lines converging, from the various agricultural, pastoral, and mining centers, toward the principal ports. Among the main lines are those from Adelaide to Melbourne, 482 miles, covered in about 17 hours; Melbourne to Sydney, 582 miles, covered in about 17 hours; and Sydney to Brisbane, 725 miles, covered in about 26 hours.

The Transcontinental Line from Port Augusta in South Australia to Kalgoorlie in Western Australia, a distance of 1,053 miles, has recently been completed. This railway links Western and Eastern Australia by an unbroken rail line, making it possible to go by train from Brisbane, the capital of Queensland, to Perth, the capital of Western Australia. That there are great possibilities in some, at least, of the country along this line is the opinion of Mr. Hunt, the Commonwealth meteorologist. He recently traveled to a point north of Fowlers Bay, 375 miles west of Port Augusta and stated that the popular idea that that part of Australia was a desert was quite erroneous. "There is quite an abundance of grass and salt bush on much of that country," said Mr. Hunt. "I am sure that it would carry sheep well if water could be provided; I am convinced, too, that it is good wheat country. The rain, we already know, falls at just the right time for wheat-in the winter and spring. So far as I can judge, this country is quite equal to the Pinaroo country, which used to be called the Ninety Mile Desert,' or much of the Mallee country. It could be very cheaply and easily cultivated." Here is