The Portland daily press., 1878-02-04
AGRICULTURAL,
Running i'm Debt for a Farm.

Running i'm Debt for a Farm.
There is much to be said on both sides of
this question, and success often or generally
depends more on the character of the man,
than the adoption of either system-debt or
no debt. Nevertheless, some general princi-
Piles may be laid down that may be useful to
every young man who Is about entering &C.
tive business in farming, and who does not
possess much capital.
The first thing to understand, is the nature
and character of compound interest, or the
amount of money one has to pay towards a
debt in long run of years. Suppose hun
dred acres of land are bought, one-third paid
down, and debt of four thousand dollars re-
mains. At seven per cent. this amounts to
two hundred and eighty dollars per annum !;
and after the purchase of tools, seeds, ami
mails, &C., and supporting his family, in con-
nection with paying shopkeeper's and black
smiths bills, the young farmer will do well if
he keeps down this interest without reducing
the principal. Two hundred and eighty dol
lars every year, (good seasons and bad ones),
would amount in ten years interest alone
compromising it as he should once year, to
$500; or in twenty years in the
same way, 1t would reach 81, 4S0. It
would be an interesting and practical ques-
ton to ask any farmer who owns hundred
acre farm without debt if he could lay up
$1,000 in twenty years from it? If he could,
and the young farmer whose case we have
supposed, might do as well, then he could
keep down the interest, but he would not re-
duce the four-thousand-dollar debt.
Much would depend on two conditions, one
of which we have already mentioned, namely
the skill, energy, economy and good iudg-
ment of the farm; and the other is the quality
of the land. Poor land may do when it is all
paid for, but heavy debt cannot be paid by
working it. A well-known and successful
business man began farming as the owner of
poor farm. He rented this farm for what
he could get and then took a fertile farm on
the shares. His half of the products of the
good land paid him better than the whole
have small and rich piece of land than an
extensive and sterile one.
Most farmers on looking at the figures we
have given will incline to recommend keeping
out of large debt. Yet there is one advan-
tage in some debt. 1t stimulates to industry
and economy. A neighbor who had succeeded
by hard work on his small farm, mingled with
days labor when he could spare the time, and
by close saving in paying the last dollar of
debt on it, remarked to us year or two af-
forwards, II must contrive to get into debt
again, for have easier times, do not make
anything"
We have given the preceding figures, not
to discourage young farmers wholly from in
curing debt, but to show in advance and be-
fore too late, the character of the RESPONSE
bility they are assuming. 1t may now be
well to see what young man may earn by
labor alone as hired hand. If he can get
his board, clothes and 5000 year to Law M,
he will have in ten years, if he adds the
yearly interest at seven per cent, the sum of
50, 700. In twenty years he would have
$4,000. Even at 800 saved yearly, half of
these sums would not be bad. Some men
can acquire property more rapidly in this
way than by running in debt for a farm.
For most this will be the best way.
As a general rule, it would doubtless be
best for every young man, ii he has nothing
to begin with, to work several years at wages.
Ii by that time he has thousand dollars or
two, he may adopt one or two courses. He
may buy small and fertile piece Of land and
work it, or he may take larger farm on
shares, and, if possible, add to his money.
The latter would give him an opportunity.
without great risk, of learning what he could
accomplish. In buying land, however, great
care should be exercised to see that he OBJ
tains the value of his money in productive
land. A young farmer with family some
years ago was ambitious to own farm of his
own. and gave thousand dollars more for a
small, handsome place than it was worth.
running in debt for nearly the whole. He
worked hard and managed badly. His farm
soon became oVergrown with weeds; but
another and more fatal growth was sprin ging
up almost unseen by him, namely. the GROWTH
by compound interest of the heavy incum.
brance on 1t. A year or two ago, it went
under four mortgages, with all that he had
so long labored for.
Then the question comes up, shall we net
go West and buy cheap farm? As the saw
ing is, 'there are six of one aud half dozen
of the other" There is no place on the
earth which groups together all the adyan-
ia yes, but they are distributed pretty evenly.
Where land is cheap, IFS products are low
priced and markets distant In long-settled
places and near cities, with their high prices
and ready markets, land also is high. Anear
neighbor let his fine farm to tenant, who
gave him half the products. But the tenant
concluded he had a hard bargain, in having
only half of all he worked for so hard. and he
told the owner he had concluded to 90 West.
buy cheap farm and have all he raised.
The owner then made him this offer: 81
will buy of you all you can raise on my farm.
and pay you the same price you would Get
for your crops beyond the Mississippi" This
offer delighted the tenant until he found bv
inquiry that the aggregate of the Western
prices were not one-half those at the East,
and he concluded to stay where he was, and
save the expense of removing.
And yet some men of robust health and
strong limbs do best by going where land is
cheap, because they are compelled from ne
cessity to work hard, endure privations. give
up society, and practice rigid economy. If
they worked as hard, and saved as rigidlv at
the East, they might do as well.
In moving West, every man should acquaint
himself well with the country and neighbour
hood where he is going; its healthfness, mar
1ets, drawbacks and advantages, and not
plunge into the dark. In making these re.
marks for and against the different courses to
adopt, our object has been to caution Young
farmers against hasty decisions, and to look
carefully, and feel their way in any change
they may make.-Country Gentleman.