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was formed by the Government of Queensland and given the necessary 

 means for furthering every branch of agricultural development 

 possible to the soil and climate. The land was alienated for next to 

 nothing, seeds were imported and distributed to all who would plant 

 them. I remember a fully-equipped dairy visiting my district there 

 nineteen years ago, and giving instruction, free of charge, to all 

 willing to learn. I believe there was not a single private dairy in all 

 Queensland then. To-day there are 13,000 and instead of having to 

 import butter and cheese, an enormous export trade has been estab- 

 lished. Surely it is possible for our authorities to profit by such 

 lessons as these. 



Our 2 1 /2% export duty on gross output is equal to a 2/- in the £ 

 income tax, on an average net profit of 20%. per annum and is 

 probably the (heaviest direct tax on agriculture in the British Empire. 

 The F.M.S. planter's position in this respect is indeed a proud one, 

 and he has been further elevated by the increased value placed upon 

 the land he proposes to plant together with other burdens recently 

 laid upon his industry. In spite of the high price of rubber, barely 

 10% of the rubber estates in the F.M.S. were in a sufficiently forward 

 position to pay dividends last year, and not more than 5% have yet 

 given an adequate return on the capital expenditure, considering 

 how long the investors have had to wait for it. Therefore, with all 

 respect to His Excellency, I would submit that the consideration of 

 how we shall use our reserves is not a very urgent question with 

 most of us to-day, and its discussion might be deferred, until the 

 community in general have something more substantial than good 

 prospects to sustain them. 



The perusal of the annual reports for the past year must surely 

 show that there is something wrong with the prevailing policy. The 

 area of the F.M.S. exceeds 16,000,000 acres and most of this is 

 suitable for cultivation or mining operations. Yet the total alienated 

 acreage is only 1,300,000 acres. Of this the Resident-General tells us 

 that probably, not more than one quarter, or say a little over 2% of 

 the whole area, is under cultivation ; while we learn from the Resi- 

 dent's report that the applications for land in Selangor amounted to 

 only 30,925 acres as against 79,776 in 1 907, while 3,534 acres reverted 

 to the State. 



In F.M.S. revenue ( although we are still taxed in excess of local 

 requirements ) there was a falling off of more than four million 

 dollars and the total reduction in the import and export trade 

 exceeded $21,000,000. It is true that there was a general depression 

 in trade throughout the world in the year IQ08 ; and the decline in 

 the value of tin was largely responsible for the shortage ; but surely 

 there are sufficient remnants of prosperity left us to make it possible 

 to tempt our fellow-countrymen, at any rate, to come here instead 

 of going to the Dutch colonies ? I think we may say that we have 

 demonstrated that the soil and climate conditions of these States are 

 as well adapted for the cultivation of rubber and several other 



