The Republican. [volume] (Oakland, Md.) 1877-current, 1884-11-08
Income From Farming Capital.

Farmers have been accustomed 10
say that capital in farming did not pay;
but this was when money brought from
seven to ten per cent interest. That
time has passed, probably never to re-
turn in the older States. Money is
most tortunatelyplaced that, with good
security, brings six per cent. Money
is now easily borrowed, on real estate
security, at five per cent, and in large
sums at four per cent. We must there
fore conclude that an investment in
real estate which earns four per cent.
is well placed; and at this interest it
would require $4,000 to earn $50 per
month.
Those who thiuk that q mechanics
wages are preferable to the return for
labor on farm have not properly
studied the facts. We spent the past
month of July in Madison and Che
mango counties, New York, and in ex-
aiming the history of many farms
from their time of settlement, at about
1900, to the present time, found
that the original settlers had
reared large families and acumu-
lated surplus of from four to ten
thousand dollars of money at interest on
farms ranging from 80 to 120 acres.
Let it be understood that these farms
We're heavy timbered, hiIly lands. hav-
ing been originally purchased at 81 to
SO per acre, requiring TO be cleared
at an expense in labor of $40 TO SO per
acre before anything could be raised
from them except maple sugar-a much
more difficult task than the opening up
of prairie farms. Yet, all these farms
were hewed out of the dense forest
and the land worked among stumps
for many years but with all these hard
ships, there was got out of these new
farms an income sufficient to rear and
| educate from six to ten children, and
at the close leave respectable surplus
| in cash.
We had q curiosity to see how these
| farms stood now, financially and econ
omically, with the present owners,
whether they were still yielding such
income as gave independence and thrift
| to this generation.
In many instances we found the third
| generation in occupation, and these
hill farms were still yielding the fruits
of the earth in such abundance as to
supply every want of the family, with
surplus every year, gradually pro-
ducing a respectable accumulation.
The question arose, What is the mini
mum investment in land, in this old,
settled region, adequate to support a
family, with land principally worked
! by its own moderate labor? Let us
take small dairy farm OF fifty acres.
Here we find ten cows, of common
blood, but selected with considerable
skill, producing, during the factory
season, an average OF 1000 pounds OF
milk per head, yielding an income of
$40 each, or 800 per season, $50 re-
ceived from sale Of calves, and $500
from small hop yard.
Besides this, the small farm pro-
duces the full line OF supplies for fam
lily of tive-the parents and three chill
dren under ten years. There is an ex-
penditure of $50 for hired labor; leav-
ing a net income from land and owner S
labor of $500. The entire capital here
invested is $1,000. A fair interest for
this would be four per cent, or Sl2C
per year. That part OF its productions
consumed in the family, and not here
a counted for, could not be properly
estimated at less than $3.50. An aver
age of $500 per year is laid by as accu-
mulated capital.
We found instances where the whole
capital invested in farm stock and tools
did not exceed s., 500, although the
number of acres was from sixty tC
seventy five, the land not being so valu.
able as the tifty-acre farm described, We
the farmers supported, in quite indie.
pendent style, families of eight or more
persons.
With the same amount of capital, the
mechanic in village or city is in fan
less independent position. Even in the
best of times the mechanic would have
to work more hours than the farmer tC
get a living; and, in a financial crisis
the business of the mechanic stops, anC
he is thus liable to be without employ,
ment; but the farmer may 90 on with
his line of products almost serenely in.
different as to the condition of genera
business, Tor whatever be the condition
of trade, the people must eat, and hi,
products are in demand. In a time
of financial crisis, agricultural prod
ucts furnish the principal business o
commerce, as was the case after the
panic of 1873. Nothing gives such
hopeful confidence of future business
as bountiful crop. Farming is the
foundation of all other business, anC
the capital of the farmer is the one kline
of capital that always brings fair re,
turn. The farmer has been able t.
make this fair return without making {
careful study of all branches of hi
business so as to make the most of every
thing He has every possible encour
agement to study more carefully al
the economies of his business. He has
been prOverbially too Indifferent tt
Improvements. We are glad to be able
to say, however, that farmers are now
making commendable progress, anc
they are anxious to learn from al
sources at their National
LiUe- Stock Journal.