104 



OREGON FARMER 



Average Family Income. 



The family incomes as shown in the table were obtained as follows : 

 From the net income, or the amount remaining after the business 



expenses were deducted from the 

 gross income, was deducted the 

 the total living expenses, the re- 

 mainder being the net family in- 

 come. The total family expenses 

 were taken just as given by the 

 farmer, except that not more than 

 $50 was allowed for each of the 

 following: education, recreation, 

 and doctor bills. Expressed in 

 another way, the farmer was 

 allowed the living of himself and 

 family except that a limit of $50 

 was placed on recreation, education 

 and medical bills. No limit was 

 placed on clothing or household bills. Thus the family income includes 

 the interest on the capital invested and wages for the family labor. 



In every case the per cent of net profit or loss was figured on the 

 value as given by the farmer; and in nearly every case the value was 

 about one-half greater than the value five years ago. In the case of 

 stock farms, a report often showed a large receipt for stock sold; or 

 a large payment for stock bought. In the absence of inventories at 

 the beginning and end of the year, it was impossible to tell what part 

 of the receipts from a sale was a profit and what part original cost. 

 For instance, a man could sell all his stock and show large receipts, 

 increasing the per cent gain for the year. But he would be making 

 an alleged profit by reducing his capital. It was considered that for 

 all persons interviewed, the total stock owned by them would be 

 constant, or about the same at the beginning as at the end of the 

 year. Also that the total sales less the total purchases would leave 

 the total net profit on the stock bought and sold by the stock raisers. 

 It is believed that the number averaged were sufficient to offset 

 possible errors in such cases. 



AVERAGE RATE OP PROFIT, INCLUDING FAMILY LABOR 1911-12. 



