FARM ECONOMICS.

Star (Christchurch), Issue 16506, 17 August 1921, Page 2

FARM ECONOMICS.

AN ASHBURTON LECTURE. ‘“Farm Economics ” was .the subject ; of a lecture given to Ashburton farmers i yesterday by Dr Hilgendorf, of Lincoln j College. i lie president of the A. and P. Association (Mr Hunter Morris) presided over a large attendance. The chairman, in introducing the speaker, said the subject was opportune at the present time of agricultural depression. Dr Hilgendorf defined his subject as >usiness in so far as it related to the arming community. Referring to noney a,s used in exchange, bo stated As essential qualities as intrinsic value, recognisability, divisibility and practical permanency. Gold was the money substance of tho civilised world, although silver and copper, being legal tender, performed currency functions. When il came to foreign exchanges., indebted tless was general, balanced by imports or exports, any surplus being settled in gold. The war had upset this mechanism of exchange, gold being impounded and an inconvertible paper currency taking its place. The over-issue of these rates in various countries had caused tho present chaos in the exchanges, the speaker instancing the exchange with the United States. Dr Hilgendorf proceeded to an exposition of the money, theory' of prices, showing how an increase of currency and credit increased prices and vice versa, quoting economic history of the last century in support of his statement. Dr Hilgendorf proceeded to show how the prosperity ot the last twenty years had been due to prices of primary products increasing in advance of manufactured articles and wages. This had been to tho advantage of the farmer both as a seller and as a debtor or mortgagee. The farmer’s advantage was the disadvantage of the salaried man and the creditor. During the war the process of inflation was hastened by Government borrowing, the credits thus created forcing up prices at a rapid rate. The reverse process was now in operation and the speaker quoted economichistory to show ho tv price advances or declines generally extended over periods of twenty to thirty years. He was of opinion that the present depression would not persist long, as the mechanism of finance had grown more responsive to economic phenomena The production of gold, supply and demand, tho creation of credit and the rapidity .of circulation of currency were all factors in any recovery that might be expected. Dt Hilgendorf concluded by a reference to the investigations conducted by .all universities of other countries into farm economics and recommended the teach my of the subject at New Zealand university colleges. The meeting concluded with a. vote of thanks to the speaker. &