The Leavenworth echo. [volume] (Leavenworth, Wash.) 1904-current, 1915-12-17
Speculative Value Knocked Out of
AppIe Growing Land

Only sapheads tell US we ought to
have prosperity because the farmers
raised good crops. The crops Of the
past two years have never been ex-
ceeded in this country, and yet BUSH
ness Of every kind Jagged. Real estate
values and rents were depressed. Hun
dreds and thousands Of men were out
of employment. Collections were slow
and hard to make. Money all at once
seemed to vanish.
There's the rub. Why did money
go into hiding2 We frankly admit we
cannot see further into milestone than
the average man, and yet we have
something akin to intuitive judgment
that at the bottom Of all these periodi-
cal depressions is the modern passion
for speculation. There is in this valley
an object lesson-on a limited scale,
it is true, and yet sufficiently pointed
from which to draw conclusion, il not
a moral Up to 1912 the land values
in the Wenatchee valley were made up
of from IS to so per cent productive
value and the balance speculative value.
Previous to 1912 the orchard occupa-
ton enjoyed for several years unexam-
pied prosperity. Well cared for orch
ards OF the better variety paid anywhere
from IS to IS per cent per acre on
land valuation OF two to three thousand
dollars per acre. II men had only ap-
piled the rule OF common sense at the
time they might have accounted on
rational grounds for their abnormal
profits. Will men never learn that
profits in any human occupation cannot
long remain above an approximate gen.
eral average. The temptation to en-
gage in apple-raising was so great that
the production increased rapidly, with
the result that the production OF west
ern apples soon outgrew the demand
for that particular class Of fruit. Also,
the eastern growers profited by the OBJ
ject lesson and gave their trees more
attention, with the result that the east
ern fruit more nearly approached the
northwestern apple in quality and pack.
If the western apple grower had been
able to secure patent on his methods
of production and by law limited the
acreage, these land values might have
held up. A little reflection on the
part OF the Washington apple grower
might easily have convinced him that
a cinch on the business was impossible,
and in the absence Of a monopoly he
was almost sure to be confronted with
increased production and better meth
DDS on the part Of the eastern growers,
not to mention the probability Of crop
shortage. The apple growers Of the
northwest could have avoided the dis
aster which overlook all who paid two
and three thousand dollars per acre for
land. Ten years ago bearing orchards
sold at from $500 to 5000 per acre.
At the then prevailing price Of apples
the business was immensely profitable
and the pyramiding Of prices began.
The first man sold for one thousand
dollars per acre. one-tenth in cash, the
balance to be paid out Of the profits.
The second holder sold for two thou
sand per ace, one-tenth down, balance
on time; and the purchaser in turn
sold for three thousand per acre, one.
tenth down, the balance to be paid out
Of the profits. Like wanton boys, they
were swimming on a sea OF bladders,
to repeat the words put in the mouth
of Cardinal Wolsey by great poet.
Land values were kited beyond rea-
son and sound judgment, with the re-
suit that taxes were increased and in
terest charges absorbed large part Of
the profits Of raising apples in the We
natchee valley. A diminution in the
Weld one year and fall in price the
next brought disaster to many growers
and more than any other one factor
is responsible for the hard times OF the