20 



BULLETIN 41, U. S. DEPARTMENT OF AGRICULTURE. 



Table XIII. — Relation of the labor income to the distribution of capital on 273 

 farms operated by their owners in Indiana, Illinois, and Iowa. 



* 



Average 

 capital. 



Percentage in — 



Labor income. 



Real 



estate. 



Machin- 

 ery. 



Stock. 



Supplies. 



— $500 and more 



$46,582 

 25,933 

 16, 883 

 19,753 

 20, 435 

 27, 986 

 30, 158 

 35, 082 

 32, 658 

 46, 573 

 55, 625 



S9.7 

 89.2 

 88.5 

 89.6 

 86.7 

 86.8 

 86.6 

 89.8 

 88.2 

 83.7 

 85.1 



1.2 

 1.1 

 1.2 

 1.4 

 1.7 

 2.0 

 1.3 

 1.2 

 1.4 

 1.0 

 1.0 



6.7 

 7.4 

 7.7 

 6.7 

 9.1 

 8.2 

 8.9 

 6.9 

 8.0 

 11.7 

 11.0 



2.4 



—5499 to -$20C 



2.3 



—$199 to $0 



2.6 



$1 to $200 



2.3 



$201 to $400 



2.5 



$401 to $600 



3.0 



$601 to $800 



3.2 



$801 to $1,000 



2.1 



$1,001 to $1,500 



2.4 



$1,501 to $2,000 



3.6 



$2,001 and over 



2.9 







Average 



30,439 



87.6 



1.3 



. 8.4 



2.7 







It will be noted that the men having the lowest incomes have nearly 

 as much capital as those having the highest. A large business is neces- 

 sary to incur large losses ; similarly, large incomes can not be expected 

 from small investments. Small incomes usually attend small busi- 

 nesses. Where land values are high, the amount of money invested in 

 working capital becomes proportionately small. 



DISTRIBUTION OF THE TENANT'S CAPITAL. 



The tenants in the States reported upon have less than 10 per cent 

 as much capital as the owners. This is shown in Table XIV. 



Table XIV. — Average distribution of the tenant's capital on 2'/7 farms in 

 Indiana, Illinois, and Iowa. 



Distribution of capital. 



Average total 



Average invested in live stock per cent. 



Average invested in machinery do . . . 



Average invested in grain and feed do. . . 



Average in cash do.. . 



Indiana. 



$1,644 



62.0 

 14.5 

 15.1 

 8.4 



Illinois. 



$2, 740 



63.8 

 13.9 

 14.3 

 8.0 



Iowa. 



$2, 459 



66.2 

 13.7 

 14.1 

 6.0 



General 

 average. 



82. 281 



64.0 

 14.0 

 14.5 

 7.5 



Two-thirds of the investment of the tenants is in live stock, a 

 large part of which is work horses. In a region where the system of 

 rental is for the landlord to furnish half of the working capital the 

 amount, needed by the tenant is less. Few landlords furnish any of 

 the working capital on the farms studied in this survey. 



RELATION OF THE TENANT'S CAPITAL TO HIS INCOME. 



A farm owner having a large investment, nearly 00 per cent of 

 which is in real estate, can let it lie idle or nearly so for the entire 

 year. It is partly due to this indifference on the part of some 

 farmers that all men with large capital fail to show good returns. 



