The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-11-04
Government WILL
STOP LAND BOOMS
Speculation in Farm Land Is
Deemed Ruinous in Central
Western States.

. NASHINGTON. Nov. 4-The goyz
ernment, through the department Of
agriculture, has Just put an effective
stop. 70 the land boom that has been
carried on throughout the Middle W@t
Tor several months. This boom. which
was basing the price Of farm lands on
fictitious ana inflated values, was par
ttcularly troublesome In the state Of
Iowa. where land went as high as SA0o
an acre. In oQA case in particular a
s% y OF land valued at only S25 an acre
% years ago, and certainly not worth
more than SIS an acre at this time
acre.
4. The theory Of the government, which
= Investigated the land situation in that
section shortly after the boom got un-
der way, was that the speculation that
was driving the land values UP would
tend TO increase the cost of farm pro-
duced food over that entire area of the
Central West, The stand taken by the
bureau of farm management Of agri-
cultural department, the bureau that
uncovered the fictitious character OF
the boom, was that If farm values went
up TO an inflated price the cost Of foods
and other products from the area at
tected would cOrreSpondingly have to
soar SO as to insure the farmer or in
weston fair percentage OF return on
the money invested in his lands.
Boom Investigated.
Investigating agents were at once
dispatched to the area affected and
search was made for the causes behind
the abnormal boom. II was found that
the section, particularly around the
state OF Iowa was suffering from land
speculation fever that was infectious
and was rapidly spreading to neighbor-
ing states. Realty operators were en-
couraging sales and investors were buy
ing with the hopes of unloading" their
new purchases almost Immediately at
an eXorbitant profit. In one county the
boom went like wildfire, ending in the
sale and resale OF 4S farms within the
county in comparatively short period
These sales were made in all but one
case on paper alone, with the exception
of moderate option fees paid on most
OF the properties to hold them for the
Spectator.
Several reasons have been advanced
for the speculation fever that existed,
but as yet no definite reasons have
been assigned. 1t has been reported
that considerable talking was done
about the existence somewhere in the
area affected of oil and mineral de-
posts, but this proved to be gossip. that
could not be placed on anyone's shout
ders.
4, NorCh dakota Hurt.
y North Dakota also felt some effects
Of the boom, but it was a more normal
increased valuation in this state Many
OF the Iowa farmers who had sold out
their interests at home went into North
Dakota and neighboring states and Of
!. fered very pleasing figures for farms.
In one known case farm in North
Dakota, held at what was considered
the high market value of $4,000, was
sought by one of the Iowa farmers and
an Initial offer of $40, 900 for the place
was made almost on sight. Through
such transactions, slightly more solid In
character than the boom, a number OF
farms in the Central West have been
sold at comfortable return in the past
few months.
AS soon as It was discovered that the
boom was wholly fictitious the federal
agencies and others having the best in
terest of the community at heart began
to make public the facts of the case.
For while there was loud cry from
the realty sharks but 1t died down as
the farming interest of the state and
the would be purchasers began to see
the real light of the situation, and
things are rapidly returning to normal
There Is still some speculation going
on, but 1t Is believed that the danger
Gus element OF the boom that threat
ened to upset values over that entire
area of the country has now been wiped
out