the storekeeper has gained by the change, as, despite his huge profits on paper, the credit system and the uncertainty of the market sadly hampered his operations in practice. The Northam district is admirably suited for sub-tropical cultures, the grape production per acre being in some cases almost fabulous. The fruit is generally converted into a crude wine, which sells readily in the locality at 5s. to 6s. per gallon-a figure which leaves a large profit. Of course, if the production increased the price in the local market would fall. But there ought to be a good opening for an export trade, and at 2s. per gallon the growers would do well.
As I said before, it is from Northam that the Government railway to Yilgarn, the newly discovered region of gold-producing quartz reefs to the eastward, will proceed. A good deal of its course of something under two hundred miles will be through the barren country, but it will open up a large area of fertile and fairly well-watered territory during the first fifty miles of its course, its construction being primarily justified by the expense of horse carriage (amounting to from £16 to £19 a ton) to what there seems every probability will prove a permanent gold-field, capable of supporting a large population. The draw back to Yilgarn is the scarcity of fresh water, plenty of brackish being obtainable, which by the use of condensers is being rendered adaptable for driving the crushing machinery; whilst with greater care in the conservation of the rainfall sufficient water for drinking and domestic purposes may be available, as at Broken Hill, for even a greatly increased population.
There is another agricultural centre hereabouts which completes the trio. This is Newcastle, a nice little town on the left bank of the Avon River, eighteen miles from Northam and fifty-three from the capital. It is not favoured, like York, with being on the main line, but, like Northam, it is connected with Perth by a feeder which branches off from the Eastern Railway at Chidlow's Wells. Newcastle, as regards soil, is another York, only, if one is to believe what the inhabitants assert, more so. It is roundly stated by a good authority to be one of the finest agricultural districts in Australia; but this I cannot vouch for, as I
