Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1915-08-06

ton unless all, or substantial lt'~
ton of it can be converted into liquid
resources available for business uses.
For the purpose of production, the
Kansas farmer whose land Is now
valued at from S100 to $3.50 an acre
has a large amount of fixed capital
that is no more effective or useful &c
him in making more money tnan it
was 20 or 80 years ago, when it was
worth only an inconsiderable fya3-
ton of the price for which it can lie
sold at this time. In fact, as part
of the equipment of his factory for
; max ing crops of grain or turning out
| herds OF live stock for market, the
/ high priced land of the present day
Is really less efficient than the same
/ acreage was u generation ago when
! it was worth SO much less. Even ii
! scientific. modern methods of culti-
walton have maintained the product
1 i've fertility of the soil, the increase
/ in value has CORRESPONDENCE added
/ to the tax burdens and the capita
Investment entitled to interest rpd
has actually increased the 2osts If
| production. So long as the farm
owner Is unable to use any part of
| the increased value of his investment
in land for productive purposes h. is
at disadvantage as compared with
other business men owning and
using only such capital as is useful
and active.
1t is evident to all who have given
the slightest consideration to The
matter that the farmers of the Unit
ed States are in possession of and
are paying taxes and trying to earn
interest on a vast amount of capital
| that, under existing conditions, Is of
no use to them In the processes of
Production. With the market value
of land constantly increasing and
with the burdens OF taxation grow
Ing heavier each year, land as a
| factor of remuneratiye production
is becoming less and less valuable.
Some method that will enable the
farm owner to convert a part OF his
fixed capital, that is his investment
in high priced land, into liquid re-
sources that he can use in produc-
ton is highly necessary or the farm
ing industry will eventually break
down under the load of ever increas-
ing charges that are piling up
| against it, The very conditions to
which the thoughtless point as an
evidence of the extraordinary pros
perity of the farmer spell nothing
less than ruin unless some ,emeiy
Is devised. The only way in when
the farmer can realize any LrOfit
from the increase in the value of his
property is to sell his farm, abandon
| his occupation, invest his money in
other business not so highly over
capitalized and move to town where
he Is certain to be unhappy and very
likely to be unfortunate in his bust
ness ventures. The average farmer
does not want to sell his farm; his
sole ambition is to operate his bust
ness at a profit.
The usual method OF converting
fixed resources in farm lands inLo
liquid capital that can be used in
production is Tor the farme~ wno
need" money 10 borrow from a loan
company and mC!tgage his land for
period, usually not more than five
years, SIS security for the debt so in
Cured and pledge for its payment.
The RAGS Of rl.e,es on ia N loans
vary in diIe enl parts of the coun
try. There are localities where
money is obtainable for six per cent
or even less. The average, however,
Oh the authority Of former President
Taft, who had his figures from the
census bureau, is about eight and
NhO-Adll per cent. AS the average
| income from farming operations is
not more than five per cent, it is evil
dent that at existing rates the farm
or who borrows money on his land
must be PLAYING a losing game. The
nominal interest charge is usually
somewhat lesa than eight and one
half per ceLt, but the commissions
OF loan es,Hts, the expenses of in
apecting end Appraisal. the lands
the cost % verifying titles and max
ing abstracts, and the charges for re-
newals ali add to the costs of the
customary method Of lending money
on land and make it impossible for
farmers to utilize that part of their
resources. 1t Is one of the anomalies
OF our financial system, or lack of
system, that the men who have the
best security to offer must pay the