St. Tammany farmer. [volume] (Covington, La.) 1874-current, 1884-08-30
Rate q Interest and Price Of Land.

The rate of interest on money has an
indirect, but none the less controlling
effect upon the fixed value of agricul-
tural lands. 1t has often been puzzling
question to American farmers how land
could bear SO high a price in England
and Europe, when the difference in the
amount of crop there and here, on the best
worked farms, was very little. The
market value of agricultural products is
somewhat higher there than here, but not
enough to account for anything like the
difference in the value of land there
and here But the chief solution OF the
difficulty in accounting for the difference
in price of their lands was found in the
rate of interest on permanent invest
mepts. Two and a-half to four per
cent. has been the ruling rate there for
MANY wears, while here, until within
few wears, the rate of interest has been
six to ten per cent.
If land in England could be rented
for ten dollars per acre, then it was
favored investment at $500 per acre;
but if land would rent at the same rate
here, it was only worth 300 to $3.50
per acre, and was questionable invest
holder has another advantage favOring
his income, and that is cheaper labor
for tillage This adds considerably to
the value of his land.
Now the question arises, what will be
the effect of our rapid reduction In the
rate of interest upon the price of our
farming lands? The stocks and bonds
of our railroads. and shares in our
mines are so fluctuating and uncertain,
that our people are likely to seek in
vestments which will be more stable,
and not subject to being swept away
by panic Small investors can have
no real voice in the management OF
| railroads, or mines, or manufacturing
companies, and therefore can never be
certain of their future value. But
when they invest in land, the value is
there. beyond the power of panic to
seriously affect it. In England, land
holding also carries with it dignity and
responsibility, which makes it favor.
| lite investment. But in this country
land has been so easily obtained-mere
| occupation for five years giving title
| from the Government-thatA Americans
have not had due respect for proprietor.
ship of land. This, however, is des-
tined to rapid change in the next two
decades. The holding of land will ba
| duly priced when the hOmesteads are
taken up. and is not so easy to obtain.
This change can now be observed in the
older States, where farming lands are
steadily rising in price and apprecia-
ton.
The English statesman, however high
his position, never regards his fortune
as complete till he owns an estate in
the country. That greatest of modern
European political philosophers and
statesmen, Burke. in the retirement OF
Beaconsfield. sought inspiration for his
his great themes If human advance
mcnt, which stirred to their lowest
,lcpths the British Commons and peO-
ple. In this environment his great na-
ture found voice.
The same love of rural pursuits is
active or latent in our statesmen and
educated classes. Witness Webster q
devotion to Marshfield; Jefferson's to
Monticello: Washington's to Mount
Grnon: Martin Van Buren's to Lin
denwald; Irving's to Sunnyside, and
the same with hundreds Of Others who
have shown great attachment to coun.
try estates.
| In the older portions Of our country
the rate of interest is rapidly gravita
ting to the European standard. and We
NAV expect to see the gradual rise Of
real estate to about two thirds the Euro
pean standard within a comparatively
Short period of time. The proportion
of our land to population is so much
greater than in Europe, that it will pre-
vent extreme prices for another century
but the result of cheap money will neces
sarilv have strong effect in raising the
very low price Of our farming lands
and the inevitable appreciation in price
will. itself, amount to a fair interest fol
the next twenty years in all the oldel
States One strong reason why invest
ments in farming lands have not already
been more sought for uninvested CAPT
tai, IS the absence of . well-regulatet
tenant system in this country.
The successful tenant in England
must have capital equal to the owner
ship of land in this country. The conse
guence is, that there the best farmer
} in the kingdom are tenant farmers
whilst here it is very difficult to tint
competent tenant farmers, and there
fore land-holders find it almost impossi
bic to rent their farms to cOmpeten
tenants. This tenant system will. M
doubt, much improve as land rises il
value and it becomes more difficult Il
purchase the title. Then tenants viii
include class of the most energetl
Young farmers. and land owners TO
investment will be able to rent thei
farms for a reasonable income. Whel
security of capital is considered, it ap
pears evident that there is no invest
ment, at the present time. ofierin
! greater inducements than that in farm
ing lands.-Lire Stock Journal
EarthauakeS.