QUESTIONS OF PRINCIPLE 41 



lambs and wool, as in the case of sheep. Thus, the breeding 

 animals on a farm are valued year by year at a constant 

 figure of so much per head, representing their cost to the 

 farmer at the earliest productive stage. A little experience 

 will tell the farmer what that cost is, under normal circum- 

 stances, and will enable him to apply an average figure to 

 all animals in the same category. Under no circumstances 

 whatever must the market value at the date of the valuation 

 be allowed to obtrude itself. To introduce market values 

 robs the figures entirely of their use, for it is impossible, 

 thereafter, for the farmer to make the comparison necessary 

 from time to time to decide him in the matter of the sale or 

 retention of any individual or group of individuals in his 

 flocks and herds. With their costs before him a familiarity 

 with the trend of the market will enable him to consider the 

 advantages of either course, but if once the true facts of 

 his own experience, as revealed in his books, give place to 

 values assigned by others as applicable to their own pur- 

 poses, all basis for the comparison is lost. 



Moreover, valuation of live stock on the basis of market 

 values at the time will confuse the farmer by the introduction 

 of paper profits and paper losses into his results. Farm 

 management is not subject, usually, to violent or sudden 

 changes, whereas markets are apt to experience considerable 

 fluctuations. In the case of breeding stock, particularly, 

 which is not shortly to be realized, the fluctuations of the 

 market introduced into the account may bring about start- 

 ling results. A shortage of keep at home, or the closing of 

 foreign ports, may bring about a fall in prices sufficient to 

 turn a profitable year into one, apparently, of serious loss 

 if these prices are employed as a basis for valuation of stock 

 which is not for sale ; similarly, a temporary inflation of 

 market values from any cause might lead the farmer to 

 unwarranted optimism regarding his financial position. 

 It follows that in valuing home-produced stock no account 

 must be taken of ' pedigree ' value. Pedigree value is 

 essentially a market value, not a cost value, and anything 

 may happen to make it of no value at all. A colt with 



