REPORT OF THE SECRETARY OF AGRICULTURE. 23 



of the problem lies in education, training, and the development of 

 systematic habits of industry and thrift rather than in radical 

 changes in the system of tenure. 



Since there will continue to be a certain number of tenants, every 

 effort should be made to change the conditions of leasing so as to 

 improve the methods of agriculture, increase the period of occupancy, 

 and insure a fair division of returns ; and the States should provide 

 by law for a system of compensation by owners to tenants for 

 unexhausted improvements and set up the necessary administrative 

 machinery. Such arrangements have prevailed in England for 

 many years to the benefit of all concerned. 



Although landlords may, and often do, play an important part in 

 financing and in operating farms, there are large numbers who live 

 at a distance and who contribute nothing toward their efficient utili- 

 zation or improvement. Moreover, they often fail to interest 

 themselves in promoting the progress of the communitj' in which 

 their land is situated, although they benefit by such progress. Land, 

 however, is peculiarly important to all the people and the welfare 

 and prosperity of the community, as well as its economic and social 

 progress, depend so vitally on its use and the relationship of the 

 population to it that serious thought must be given to the problem of 

 limiting absentee ownership. 



The endeavor to develop a more harmonious and efficient relation 

 between tenant and landlord and to restrict absentee landlordism 

 does not obviate the necessity of taking measures to retard the in- 

 crease of tenancy. The road to farm ownership should be made as 

 smooth as possible This may be accomplished in part by providing 

 more liberal credit facilities. The Federal Farm-Loan System has 

 furnished a means whereby farmers may conveniently borrow under 

 the conservative conditions of first-mortgage security. However, 

 an analysis of the amount loaned shows that only a small proportion 

 of the net proceeds was ostensibly obtained for the purchase of 

 farms. 



In some sections the growth of tenancy has been stimulated by the 

 fact that the price of land has been higher than the level justified by 

 current earnings. Consequently, it has been more profitable to rent 

 than to buy unless one wished to speculate in land values. Recently 

 there has been a tendency for prices to increase with extreme rapid- 



