4 88 READINGS IN RURAL ECONOMICS 



timber and mineral tracts are included ; and these are worth more 

 per acre than farms are worth. 



To what extent acres can be bought, without paying higher 

 than ordinary prices, in such small numbers as poor men would 

 be limited to, is somewhat doubtful, outside of suburban places. 

 The average area of a farm seems to have reached the point at 

 which it is economically adapted to our agricultural products and 

 the methods of producing them. In 1870 the average area of a 

 farm was 153 acres; in 1880, 134 acres; in 1890, 137 acres. 

 Without more intensive agriculture and a change in the character 

 of crops, it is doubtful whether there will be any considerable 

 subdivision of farms ; and, if this is so, farm and home tenants 

 cannot practically become farm-owners without buying whole farms 

 as they now exist. They would thus have to encounter an average 

 value of $2909, which they would have to meet with an equal 

 amount of cash, or cash and mortgage encumbrance. 



With regard to home-ownership, tenants can find areas in any 

 limited size that is wanted, whether in the town or in the suburbs 

 or in the rural regions. The average value of a home occupied 

 by an owner, under encumbrance, in the United States, is $3250 ; 

 in cities of 8000 to 100,000 population, $3447 ; in cities of more 

 than 100,000 population, $5555 ; and in the country outside of 

 cities and towns of 8000 people and over, $2244. 



But the poor tenant need not approach values as high as' the 

 average one, either for farms or for homes. Of the encumbered 

 homes occupied by owners, 23.31 per cent are worth less than 

 $1000 ; and, of the farms, 16.47 P er cent. Suppose that a tenant 

 were to set out to own a home worth $1000. He would probably 

 be able to acquire ownership by advancing no more than $333, a 

 mortgage for $667 covering the remainder of the purchase price. 

 The average rate of interest on home encumbrance is 6.23 per 

 cent, so that the annual interest would be $42. This is two-thirds 

 of the interest that the landlord of the home would receive at the 

 same rate. Suppose that a tenant of a home of this value were to 

 become its purchaser. He has been paying the landlord $62 

 yearly for interest ; now he pays him $42, and annually invests 

 the difference ($20) at 6 per cent interest. By adding this amount 



