Bismarck daily tribune., 1903-06-18
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THE LAND BOOM DANGER PAST.
The Iron Age says editorially:

There is a real estate speculation
in the West which will bear watching
by persons observant of financial
signs, partly because it is liable to abb
sorb money at time when money is
especially needed for crop moving and
partly on account of the intimate rela-
ton between real estate booms that
are overdone and panics and depres-
sions''
1t then reverts to the unprecedented
movement in farm lands last year and
quotes various reports collected by a
New York bank early in the spring Of
the present year pointing to continu-
alton of the movement says the ST.
Paul Pioneer Press. 1t is true that
such extensive purchases of farm lands
cannot be made without having con-
siderable effect on the money market
In order to get the money needed to
purchase new lands the farmers of the
older districts either have to draw on
their accounts in the local banks or
put a mortgage on their farms. But
while there has been a great deal of
speculative buying Of lands throughout
the Northwest. the present movement
has been largely one of bona fide set
tiers. Either the farmers in the older
districts-in Iowa. Illinois, Indiana
and Ohio-have sold out their old
farms at high prices to invest their
money in better and more extensive
lands in Minnesota, North Dakota or
Canada, or they have held their old
farms and purchased Northwestern
lands for their sons. Unlike the land
boom of the early SOS the majority
of settlers are experienced farmers,
many Of whom have fully paid for their
new holdings on the crops of a single
year Nevertheless in certain parts Of
North Dakota and to some extent in
Minnesota, lands have been sold by
Inscriptions spectators as farm lands
that at the best are only fit for graz
ing. The result of course has been
heavy losses in individual cases but
it does not appear that this practice
has been enough to do any appreciable
damage The fact is that the move.
ment has on the whole been thorough.
ly sound and substantial and with the
help OF last years good crop and bright
prospects OF another the probability
of any great number of foreclosures or
OF any strain on. resources is small.
1t has taken great deal of money to
finance the movement but not all of
has come from accumulated re.
sources.
so far as the prospective effect on
the money market this fall is con.
cerned the demand is likely to be much
lighter than last year For it appears
that the speculative craze. at least so
far as Iowa, Minnesota and North IA.
kota Is concerned, has subsidized
There is still steady and healthy de.
mand for lands for actual settlement
out II IS no longer q boom. 1t appears
mat the demand for money on farm
mortgages in Iowa which was intense
~ active last year. has almost subsided
and there are many other indications
that only fraction of the funds need
ed TO finance last years moyemen,
Will be needed this fall Given anoth
er successful crop and it is doubtfu
whether the return of money tn th.
East which usually follows the Gro,
moving period will again be inter
rhpted. Since this quieter conditio,
discourages speculative buyins an,
tends to encourage bona fide settle
ment 1t is thoroughly wholesome an,
there is therefore little cause to fea
the OVERRIDING of the farm land boom
however, close we may have come r
II last year The danger that the Iro,
Age warns against is a danger of tn
past, not of the future.
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