The Bossier banner. [volume] (Bellevue, Bossier Parish, La.) 1859-1952, 1884-08-21
Rate Of 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 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
ments. Two and a-half to four per
cent. has been the ruling rate there for
many years, while here, until within a
few years, 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 q
| 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
ment at that. The European land
holder has another advantage fayoring
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 landsP The stocks and bonds
/ of our railroads, aud shares in our
L nd
/ that our people are likely to seek in
/ vestments which will be more stable,
and not subject to being swept away
/ by a 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, lands
holding alss, carries with it dignity and
responsibility, which makes it q favor
| tie investment But in this country
land has been so easily obtained-mere
occupation for five years giving title
| from the Government--that 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 be
| 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 Che retirement OF
Beaconsfeld, sought inspiration for his
his great themes Of human advance
| nlent, which stirred to their lowest
depths the British Commons and peo-
| Pile. In this environment his great ma
ture found voice.
The same love of rural pursuits is
active or latent in our statesmen and
educated classes Witness Webster's
devotion to Marshfieid; Jefferson's to
Monticello; Washington's to Mount
| f'ernon: Martin Van Buren's to Lin
denwald; Irving's to Sunnyside, and
the same with hundreds of others who
have shown great attachment to eoun.
try estates.
In the older portions of our country
the rate Of interest is rapidly gravita.
ting to the European standard, and we
may 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 twill pre-
vent extreme prices for another century;
but the result of cheap money will neces-
sarily 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 for
the next twenty years in all the older
States. One strong reason why invest
ments in farming lands have not already
been more sought for uninvested CAPT
tai, is the absence of q well-regulated
tenant system in this country.
| The successful tenant in England
must have a capital equal to the owner
ship of land in this country. The conse-
| quence is. that there the best farmers
in the kingdom are tenant farmers,
whilst here it is very difficult to find
competent tenant farmers, and there
fore land-holders find it almostimpossi-
bic to rent their farms to competent
tenants. This tenant system will, no
doubt, much improve as land rises in
value and it becomes more difficult to
purchase the title. Then tenants will
include class of the most energetic
young farmers, and land owners for
investment will be able to rent their
farms for reasonable income. When
security of capital is considered, it APP
pears evident that there is no invest
ment. at the present time, offering
greater inducements than that in farm,
ing lands. - Lice Stock JossrnGI.