“CAPITAL STOCK”

Dominion, Volume 34, Issue 179, 26 April 1941, Page 10

“CAPITAL STOCK”

When he made the official defence of the Government’s decisions regarding restrictions on the killing of stock, the Minister of Agriculture placed emphasis on what he termed “capital stock.” The Minister would do the country, and especially the meat producers, a service if he would define clearly what he means by the tenn. If the steps he has taken have been designed to protect this portion of the live-stock holdings it becomes more difficult to discern what, in the official view, is and what is not “capital stock.” Since the original rigid restrictions were imposed there have been adjustments and they have given producers a measure of relief, but as things stand it is more than doubtful whether the stock position has been improved. The latest extension will enable farmers in the southern districts to send fat ewes up to 641 b. to the works, and Mr. Barclay has given figures showing that a larger number of ewes have been killed this season than last. That, in itself, does not indicate any draft on the so-called capital stock, because it may simply mean that the producers have sent their fat ewes to the works and have kept the maximum number of ewe lambs. That course would be in the interests of the industry, for the old ewes, if kept, must deteriorate in quality and value, whereas the ewe lambs will not. Investigation may prove that the strict limitations applied to the North Island are really having a detrimental effect on the flocks, taking The long view. Any property has only a limited carrying capacity, and if a producer cannot get his prime wethers away, because they may exceed the limits set, he may be compelled to reduce his stock by sending ewe lambs to the works. That would be a development most likely to affect adversely the capital stock position, but the ownei may have no choice. If he cannot carry all the stock on the place then he must sell what he can, even though the sale of ewe lambs will reduce production in coming years and the wethers he must keep will go back in condition and fall in value. The other day the Minister spoke of the necessity for maintaining the productive capacity of the country, and there can be no difference of opinion on that matter. But if temporary restrictions on the killing of stock at the meat works have the effect of increasing the number of ewe lambs slaughtered, and at the same time of increasing the proportion of old ewes and wethers among the flocks of the Dominion, surely the effects on productive capacity in one important direction must be serious? The older stock cannot be expected to increase iff value They can quickly become a doubtful asset.' But the young stock should be worth holding, and it will be against the interests of the Dominion if, in an effort to comply with the restrictions while at the same time not overstocking his farm or run, the producer is forced to send to the works the stock necessary to maintain the flocks in the future. That is an aspect of the new order that should have attention, especially from those concerned about the “capital stock” of the Dominion.