The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1919-09-30

month where the farmer was selling
his stock and implements, because he
had first sold the realty.
who bought this farm? we asked.
We'll, so-and-so bought it from Smith
man." said the man who had invested
in hogs at the sale, but it has changed
hands two or three times since then,
and don't know who owns it now"
And this was in Wayne county,
gentlemen. Nor is this a solitary ex-
ample-there are many Of them, and
this goes for the state, as well.
We do not believe, however, that the
speculative fever has been quite SO
fatal or contagious in Indiana or Ohio
as in Illinois, Iowa, Nebraska and the
Dakotas. But it is a fact that $23
hogs, 81 and up corn and wheat and
hay at the highest prices since the
landing Of the Mayf1ower, have all
been reflected in the upward trend in
farm lands. The city spectators are
reaping a harvest, lands have even
trippled in speculative value, without
adding an ounce to productivity, and
therein lies the danger.
Real Test Of Value.
A good test of what a farm is really
flated acres may possibly decline, is to
ascertain just how much money the
land banks, or the solid old insurance
companies will loan on the property,
for a term of years.
In many instances one would dis
cover that he could not mortgage the
property for more than 2 per cent OF
the selling price, today. The reason
why is clearly apparent
Consider the land which brought
1925 to $3.50 per acre in favored loca
lions five years ago, and which is sell
ing at $3.50 or over daily just now
what has happened to it? Properly
farmed in 1914 and just as carefully
farmed today, how many more tons OF
clover or alfalfa will it produce; how
many more bushels Of corn, wheat and
oats will it produce per acre; how
many more head Of live stock can be
fattened and marketed from the soil
now than then?
This is the crucial test of the whole
matter II you can raise more, then
how much more? If less, for any
reason, you will not have a leg tc
stand on when prices of farm products
with all other essentials, are stabilized
at lower levels, as they surely will be
tho never perhaps, on a prewar basis
nor indeed is the later to be expected
for years, if ever. The old order
changeth and we are living in a new
day, but not in a day when there is nj
top to land values, or to anything es
sential to life and comfort.
Speculative Procedure.
| If a man feels that the land canno
possibly earn interest on over forty o.
| fifty per cent of it's present selling
value he will assuredly cut the loan tt
! Lis liking, and within the limits h,
considers safe under possible fore
closure. And there you are, as a buy
er in good faith.
But this doesn't bother the specula
tor. He doesn't expect or desire t.
! borrow; his aim is to sell at prof
and quickly, while everybody is eleva
ting prices and the selling is good.
Now what has he to sell? In mos
| instances an option in effect, held a
the lowest cash cost, and which in tn
northwest is in the usual case to rul
to March /, 1920, at which time tn
payment is to be completed and pos
session given.
Well, possession is the very las
thing the speculator desires or e1
poets. He bought to sell, not hold.
he doesn't succeed in unloading, h
can forfeit a few hundred dollars, lei
ting the farmer take hold where h
| left off.