CHAPTER XXXIII. 

 CAPITAL REQUIRED. 



To buy a large pastoral run requires a lot of capital ; 

 to buy some of the small grazing runs of the Dominion 

 also takes a deal of money, but as this chapter is written 

 primarily for the average sheepman, an estimate of 

 capital required by such is quoted. Knowledge of the 

 art of sheep husbandry is often as good as half capital, 

 and the man who is acquainted with the business can 

 safely work upon much less capital than the inexperi- 

 enced person, whose income may be much lessened by 

 faulty methods or by cost of employing capable manage- 

 ment. The man with knowledge, but small capital, 

 can much more confidently arrange finance and leave 

 on mortgage a large percentage of the purchase money. 



Let an example be taken of what capital expendi- 

 ture would be involved in the undertaking of a sheep 

 farm running, say, 1,000 ewes. It is doubtful if any- 

 where in JSew Zealand reliable two-ewe country can be 

 obtained reasonably accessible to market for less than 

 15 per acre. Therefore : 



500 acres at 15 7,500 



1,000 good breeding ewes at 1 1,000 



20 rams at 5 100 



Extras Implements, etc., Bay 250 



Total .. 8,850 



According to this each ewe carries a responsibility 

 of close upon 9 capital expenditure, and the fact 

 forcibly illustrates the call that there is for skilful 

 management. There is no doubt that with the farm of 

 the proper class the proper man could do a lot to make 

 ends well meet in this case. To earn a gross return of 

 10 per cent, on this capital the 1,000 ewes would require 

 to return 885 per annum, or some 17/6 per ewe, from 



