The roundup record., 1911-05-12

net, is paying 10 per cent on $50.
u. Land that produces one ton of
tobacco worth 5000 at cost of SIS
per acre, leaving s1o5 net, is paying
~ per cent on a value Of $3.50 per
acre. z. Land that produces annual.
~ $5OO worth of lettuce and $500
worth OF celery per acre at a cost of
sloo Tor manure and $500 for labor.
after paying taxes and other charges
amounting to 500 additional. would
YET pay 10 per cent on a valuation q,
$4,000. The market prices Of these
lands may be more or less as follows.
4, $40 per acre: B, s25: c, $50 to $40:
y. $500 to $500; and e. $1,000 to
$1,000. for price and value become
approximately identical only under
complete utilization and perfect con.
ditions. Place value, depending on 10.
cation, may be s1,OOO.o0O per acre in
certain parts CT New York city, $1,000
per acre in Great Falls and nothing
In unsettled territory away from the
arteries of commerce.
The law of supply and demand af.
fects place value and price far more
than 1t does Intrinsic value. For ex.
ample, though land may be capable
of producing Just as much wheat in
Montana. 1000 miles from Minneap.
oils and 100 miles from a railway, as
one mile from Pillsbury's mills, in the
latter case twenty-five bushels worth
$25, produced at cost of $40. leaves
SIS, or 10 per cent on $3.50 value: in
the former case we must deduct 90
cents per bushel for freight by rail.
way and 80 cents per bushel for haul
ing to railroad leaves 80 cents as the
farm value of the crop which means
net deficit and no value Of the land
for wheat growing
Again we might find $4,000 acres of
wheat land close TO the railroad, cap.
able of growing twenty-five bushels of
wheat per acre at a cost of $40, with
2O.cent freight rate 10 a 81 per
bushel market Although such land
produces SIP per acre net. or 10 per
cent on s120, If only small proper
tlon OF this area Is producing a crop
the price of II all will be regulated by
that of the non-producing portion. In
Iowa. with no vacant unproducing
land. the price will approximate the
value. $1o1 per acre: in Montana the
price will depend largely upon the pro.
portion unoccupied
Do think Montana lands are be.
coming too high in price? Do con-
slider land investments at present
prices precarious? Most emphatical.
~, no!
Unirrigated wheat lands that will
produce thirty to forty bushels of
wheat every two years-and there are
thousands of acres that may be made
to produce fifty bushels if properly
pay 10 per cent on $40
to Sll0 per acre; and whatever differ.
ence there is between this and the
purchase price may be credited to the
as profit.
Irrigated lands producing seventy.
live bushels of oats, fifteen tons of al.
falfa and fifty bushels of wheat in
five-year rotation will net at least $25
per year under average conditions
a good return on $3.50 investment.
The realization Of land prices an.
values based upon pro.
ductive capacity depends on farmers
II the latter ARE Industrious, thrifty
and intelligent; and if they get con
troll Of and cultivate all the land that
Is available for tillage, prices will
soon come into equilibrium with in.
Lrinsic values.
Spectators alone are responsible
FOR fictitious values and prices. They
often not only fail to do anything to
Increase values. but actually prevent
Increase by holding lands at prices
to settlers. 1t is unfortu.
nate that the Industrious farmer, to
whom alone the country's develop.
nent is due. cannot share the incre,
nent with the unproductive specula.
or.
May the day be fastened when all
he tillable lands In Montana will be
n the hands Of farmers who will nut