8.—6

after consultation with representative growers and other persons connected with the wool industry a price was agreed upon which represented an advance of 55 per cent, on pre-war prices. The export of wool was prohibited on the 18th November, 1916, and on the 21st December following, a Proclamation was issued requisitioning all wool of the 1916-17 clip. No organization or machinery existed to give effect to the requisition of the Imperial Government, and the Minister of Agriculture appointed an Advisory Committee to deal with all matters affecting the preliminary details and assist the Department. The scouring of low-grade wool and the purchase and fellmongering of sheepskins on behalf of the Imperial Government have been undertaken. The results of the operations from the Ist December, 1916, up to the 31st March, 1917, were : Total number of bales valued, 421,388 ; number of bales shipped, 219,030 ; number of bales paid for, 399,529 ; total payments made, £9,315,924. Cheese. The arrangement entered into with the Imperial Government under which one-third of the production of cheese for the season 1915-16 was made available for Army purposes was completed on the Ist October, 1916. The quantity shipped was 189,502 crates, and the total payments £917,748. On the 16th January, 1917, the export of cheese was prohibited, and arrangements were made with the factories for the purchase on behalf of the Imperial Government of all first-grade and second-grade cheese available for export; the price was fixed at 9|d. per pound for first-grade and 9jd. per pound for second-grade cheese. Satisfactory arrangements for payment of the cheese and for storage were made with the Imperial Government. During the 1916-17 season the shipments totalled 153,845 crates, and the payments £1,547,408. Owing to the shortage of shipping facilities in the early part of the season very heavy accumulations of cheese resulted, and it became necessary to keep much of the supply in stores which were more or less unsuitable for the purpose. To meet this difficulty special representations were made to the Imperial Government through the Right Hon. the Prime Minister, with the result that large shipments were provided for during March and April, 1917. As a means of checking any possible risk of deterioration, arrangements have been entered into with the overseas shipping companies under which the cheese is now being carried at a reduced temperature. General. The purchase of scheelite started on the 20th September, 1915 ; 350 tons were shipped, for which £67,480 was paid. The'total payments made to producers on behalf of the Imperial Government from the 3rd March, 1915, to the 31st March, 1917, amounted to £27,819,116. RESERVE. I announced in last year's Budget that a special reserve had been established in London for the purpose of meeting possible sudden demands resulting from the war. I felt that the Reserve Fund of £800,000 ordinarily maintained in London was insufficient under the present unusual conditions, and I have invested in London out of surplus revenues a sum of £3,917,731 for this purpose. The public has been placing a large amount of its cash at call with the Post Office, and I feel convinced that when peace is declared a very considerable proportion of these deposits will be claimed. We have been borrowing these Post Office deposit-moneys for war purposes and other local needs, and it is probable that the Consolidated Fund may after the war have to repurchase some of the securities it has given to the Post Office to enable the Postal Department to meet its obligations.

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