Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1902-03-06
LAND VALUES.
Paper by o. r. Ide, of Braytou,
Read Before Farmers In.
stltute Here, Feb. 40.

SuSOSS sbSSSS TSU. &O'
The past has its lessons, the present
its opportunities and the future its pos
sibilities. There are laws of nature
that apply in economics a. certainly as
in physics and mechanics. The chem
list can mite combinations OF acids and
salts and tell before hand what the re-
action will be. and how soon it will
take place. The mechanic can COM
bine physical forces and tell what the
resultant will be. Likewise the econ
omist from data furnished may show
conclusively that prices may advance
or depreciate under certain conditions,
but he is handicapped at thebeginning
by the stern fact that lie can not tell
just when it will come about. Some
men, however, seem to he endowed
with the faculty of determining more
than others Just when these conditions
will mature. This faculty may be fore
sight, or it may be accident. We are
inclined to believe that it is more fire.
quently the latter.
It is undoubtedly we'll that all men
were not equally endowed in this re-
spect, for then we would all have been
spectators.
That farm lands in Iowa would ulti-
mately be Of great monetary value
there has never been any doubt, for if
land in Ohio, Pa. and Indiana was
worth $4,000 an acre years ago., As
much Of it was, it could only be ques-
ton of time when Iowa lands which
were infinitely better in quality than
the lands Of the afore, mentioned states,
would bring as much, but the mills of
the gods are known to grind slowly,
and the impression had for many years
been quite generally accepted that the
time when this condition would arrive
was in the future somewhat remote,
but the fact stands ont in bold relief
that choice farm lands in Iowa after
having been at standstill for score
Of years, have actually doubled in val.
ne during the last Eve years, and not
only is this true Of Iowa land but the
sand hills and alkali pools Of the west
whose values have always been desig-
mated heretofore by q single cipher, ARE
now said to have commercial value.
That some of land values at the pres
ent time are Of q speculative character
there can be no doubt, for every time
. piece Of land changes hands. . new
pricsis placed upon ii, and il generally
placed upon the market again, specula-
ton would cease at the present time,
land values would perhaps settle back
somewhat lower than they are now,
and it would seem that speculation has
certainly almost reached its limit.
From the standpoint Of an investment
the value oflfarm landsi in general, not
unlike the legitimate value..of railroads,
must always be measured by their
earning capacity, hence if we consider
the present values OF farm lands as
their par value, they will be at q pre-
MUM or discount according to their
capacity to earn q greater or less divi-
dend than they earn at the present time.
The fundamental principles upon
which farm values rest are the fertility
Of the soil, and proximity to an extent
of the market. We have in the New
England States examples of farm lands
continuous to great markets, and yet
these lands COMMIT and scarcely any mar
ketable value from the fact that they
have become exhausted, worn ont.
Will Iowa farms some day be in this
unfortunate condition? l do not think
so. We understand better than our
forefathers did, the nature Of soils and
the maintenance Of their fertility, and
the evidence upon every hand is suiii.
cient that the people are taking advan-
tage Of that knowledge, and seeking for
more. They are each year looking
more and more for improved seed, and
improved stock, and improved methods
and thereby vastly increasing the earn
ing capacity of their lands. To add to
this their efforts have for several years
been rewarded by renumerative prices
in the market for nearly all their pro-
ducts, and the earning capacity has
reached maximum. Present prices
of farm products are renumerative, and
would justify the payment of present
prices Of land and much greater, were
they to continue. We b elieve that
prices for..farm products will be upon q
higher basis for b number Of years than
they have been in the past, for the
reason that SO many Of the products OF
the farm and especially the cereals, are
finding new uses in manufactured forms
of attractive and appetizing foods, that
enhance the value of the raw material,
and at the same time create Q wider de-
mand. Again our manufacturers are
enjoying a period Of unexampled pros
perity, and extending their markets in
to the remotest corners Of the earth
and 30 long Is this condition exists
prices must continue to be renumers
tive.
But allis not gold that glitters. Darl
days will come in the future As in th,
past. Unfruitful seasons, labor troub