The  heavy  fall  of  prices  of  all  the  staple  produce  of
Wales,  especially  the  drop  of  fully  50  per  cent,  in  wool,
and  the  exceptional  depreciation  of  all  stock  in  the
disastrous  seasons  of  1892  and  1893,  have  inflicted  severe
losses  everywhere  through  the  hill  and  grazing  districts,
which  had,  before  1884,  been  moderately  prosperous.
The  fall  in  dairy  produce  has  also  hit  many  districts.
The  position  of  farmers  in  many  districts  is  described
as  serious,  and  involving  great  hardship  and  uncertainty.
The  small  occupying  owners  have  largely  lost  their
capital,  and  are  in  some  districts  anxious  to  sell  their
land.  The  capital  of  tenant  farmers  has  been  heavily
reduced  where  it  has  not  been  completely  swept  away.
Mr  Fisher  states  that  farmers  can  only  meet  the  in-
creased cost  of  production  and  fall  in  prices  by  cutting
down  the  chances  of  their  children.
"  The  great  majority  of  farmers  are  gradually  getting
poorer,"

There  are  essential  points  to  be  borne  in  mind  in
estimating  the  position  of  agriculture  in  Wales,  and  the
real  effects  of  the  depression  in  the  Welsh  counties.
In  the  first  place,  there  has  been  a  relatively  excep-
tional rise  in  the  price  of  labour.  It  is  perfectly  true,  as
pointed  out  by  several  witnesses,  that  many  of  the  small'
"  mixed  "  and  dairy  farms  of  Wales  have  good  markets
in  neighbouring  large  towns  and  collieries.     But  this  very


t


WALES  19

advantage  has  raised  wages  more  rapidly  than  in  most
rural  districts  in  England.  Thus  the  cost  of  production
has  been  rapidly  rising,  while  prices  have  been  steadily
falling.
