Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1919-06-19

compelled 70 buy Of were tempted BY
the earnings of tat years to venture
buying farm Of their own.
hIoh ppIess 20 Continue.


the earnings OF tat years to venture
buying a farm OF their own.
High psIess 70 Continue.
The end OF the war did not bring the
crash Of pricea and the belief grew
that high prices would continue. Caro-
ful observers have failed to see any
Immediate decline. and some have pre-
dicted high prices for farm products
for years 10 come. The result was to
enhance the value OF land.
Now, so tho bankers contend. we
find the non resident. the embryo
farmer ana the tenant bidding for
land, We also have the farmer who
Is extending his holdings, making his
farm larger to increase his returns.
Bankers had discouraged such ex-
pansion and such venturesome ex-
ploits. Money could not be had for
sufficiently loRg period and ut such
prices az to warrant the plunge.
Government Comes TO Aid.
The government. however. had pro-
vided a way for the ambitious land
owner. The federal farm loan bank
made 1t possible for the man who
would acquire farm to obtain tho
means at o low rate, with u long time
In which to pay out.
Another bidder appears IN the man
or means, who can pay the price and
carry the burden il met with adver-
sity. The man who heretofore had in
vestment for his means in stocks and
Industrial institutions took a chance,
md perhaps q more remuneratiye one,
for peace times, In farm land.
Then the Spectator.
The sixth reason for the increase In
land values is one which bankers hes
itate to class as Of prime Importance.
tho to the public. perhaps. 1t appears
as OF first magnitude. This Is specu-
lation. Just how far speculation has
figured in the rise or values Is prob
lematical, but an analysis Of the sit
uation seems to fix upon the specula-
lations of land buyers a large part Of
the responsibility, especially at the
present time.
Speculation may not have played so
great a part several months ago, but
when the tendency Of prices was seen
to be upward there was and still Is a
rush of buyers. Business men in other
lines, and ignorant Of land values, have
been rushing agents to buy for them
on the speculative market.
Many farms are being bought on con
tract, with purchasers never expecting
to have the farms delivered to them.
There have been many instances in
this county where farms have been
sold, with the buyers having not a
cent in the transaction, the land then
being resold at a handsome advance.
Speculation stimulated the demand.
There were numerous bidders for the
same farm and the price was run up
to new records. The unsuccessful bid
ders turned to other acreages, there to
find the bidding just as spirited.
Farms have been bought in the
county and resold at a large increase
within week. Small payments were
made on the contract, and the second
buyer made but q small initial pay
ment, trusting to dispose Of the land
before the date Of delivery, and to take
a profit on the resale.
Will Prices Continue Upward?
How long prices will continue up
ward bankers refuse to hazard a guess.
There are many reasons for believing
there will be no immediate decline.
But there are always reasons to ex-
pect a collapse. A bad crop season
might have the effect Of suddenly
turning values downward. Labor I'M
rest. claimed by some observers to be
In prospect would have a tendency to
pull down prices Of all commodities,
including products, with a decline in
land as result. No marked decline,
1t has been said. may be looked for.
however, until the treaty of peace Is
signed and there is some semblance
of order In the war-torn countries of
Europe.
The real value of land is determined
by the value of products and no farm
is actually worth more than what it
really produces. With continued heavy
demands on the farms, continued big
production, and continuance of high
prices land must maintain high
value. On these things depend the ac-
tivity Of the realty market, and the
three are dependent one upon another
The Spectator in land is gambling
that these conditions will continue.