The Barre daily times. (Barre, Vt.) 1897-1959, 1919-09-22
MAY HELP N. E. FARMS.
The Speculation Now Going on in Farm
Properties.

properties.
A Reconstruction" phenomenon which
may have far-reaching consequences is
the fever Of speculation i'll farm lands
now raging in the middle West--par-
ticularly in Iowa and the Illinois corn
belt, but already spread to northern
Missouri, eastern Kansas, eastern Ne
braska, eastern North and South Da~
kota, southern Minnesota and western
Indiana. The situation, over a large
range Of territory, appears closely to
resemble suburban land booms near
big cities under exceptional conditions,
as when the New York East side was
forced to yield many acres of crowded
residence district to provide an approach
to the great Manhattan bridge. Tracts
of land changed hands rapidly and many
people made large sums of money sell
ing land before they bought it, on the
knowledge of what it could be had for
In the middle West boom now in prog
ress town and city dwelers, not farm
ers, have been among the chief specu-
lators, in some single transactions max
ing profits of from $4,000 to 100000. In
Iowa and central Illinois prices have in
creased since spring on an average Of
from $75 to 800 an acre.
This situation, which has been the
subject of special investigation by agents
of the department of agriculture, threat
ems dAgree of economic chaos. Many
buyers Of land, in nearly every case
making small first payments, are de-
pending upon future sale of the prop
erty to enable them to hold up their
end of the contract into which they
have entered. 1t is the nature of such
booms to keep forging ahead until a
crash comes. But if in given case the
crash should be ayerted the final holder
OF the land is likely to find himself
obliged to produce so much revenue from
1t to meet the cost of carrying it az to
tax his resources to the utmost, and per.
haps to the breaking point. His prob
lem will be very much the same as that
Of the corporation attempting to pay
dividends on watered stock. Meanwhile
the banks, which lend money on a com
paratiyely- small percentage Of farm
land value, are not inclined to base their
paratively small percentage of farm
deed, the department Of agriculture prop.
erly warns them against assisting in the
present feyerish speculation.
What the effects may be of this dis
turbanee of normal economic processes
it would be difficult to forecast. Al
ready many successful farmers have re
tired on the proceeds of the sale of their
farms; Others have moved TO states
where prices are hess Whether the loss
to agriculture by the withdrawal of for
mer will be Offset fully by the gains in
extending efficient methods to new re-
gions by the latter remains to be seen.
Many who find themselves unable to
work their high priced farms at a prof
il will doubtless clamor for higher prices
for their products. Whether they can
get them or not win depend largely upon
the conditions generally prevailing, in.
Guiding those outside the boom districts.
On the other hand the pressure for more
profitable production may well have a
legitimate reaction in demands for i'm
trovements in transportation. marketing
facilities and methods Of production. In
any event the farmers have started
momentum that is bound to keep things
going il the alternative is TO be avoided
Of the abandonment of many OF the
richest farm acres in the country, or
their resale at great financial loss,
One effect of this frenzy Of specula-
tion should be to turn the attention Of
farmers to the neglected lands of New
England Many Thousand acres capable
Of Ugh degree Of cultivation, near mar
kets and accessible by the best roads
and transportation facilities in the coun-
try, are to be had for much less than
the amounts representing mere profit in
large proportion of these middle West
transactions. If the Mondell BILL EN-
bodying the Lane plan for soldier settle
ment, goes through, it is highly probable
that the government will avoid fancy
priced land for its projects. II will have
the more reason to look this way for the
opportunity to get the most for the re-
tired service man and for agriculture per
dollar expended. Springfield Republican.