FARM OWNERSHIP AND TENANCY IN TEXAS. 



29 



land was kept an average of over three years. Therefore, land in- 

 vestment has been exceptionally safe to these people. 



Table 16. — Changes in the value of land bought in the black land by the opera- 

 tors interviewed, expressed in equivalents of interest compounded annually on 

 the original investment. 





Land bought and sold. 



Land bought and still owned. 



Changes in land values 

 equivalent to an annual 

 compound interest of — 



At a gain. At a loss. 



At a gain. 



At a loss. 



Num- 

 ber of 

 cases. 



Ag- 

 gre- 

 gate 

 years 

 held. 



Aver-| 



age Num- 

 com- ! ber 

 poundi of 

 inter- j cases. 



est. 



Ag- 

 gre- 

 gate 

 years 

 held. 



Aver- 

 age 

 com- 

 pcu.id 

 inter- 

 est. 



Num- 

 ber 

 of 

 cases. 



Ag- 

 gre- 

 gate 

 years 

 held. 



Aver- 

 age 

 com- 

 pound 



inter- 

 est. 



Num- 

 ber 

 of 



cases. 



Ag- 

 gre- 

 gate 

 years 

 held. 



Aver- 

 age 

 com- 

 pound 

 inter- 

 est. 





11 

 5 

 19 

 19 

 8 

 6 

 7 

 7 



28 

 25 

 118 

 132 

 32 

 19 

 21 

 12 









4 

 23 

 72 

 48 

 11 

 4 

 8 

 5 



6 



266 



1,148 



643 



77 

 28 

 54 

 11 











Above and to 4 per cent . . 

 Above i and to S per cent . . 

 Above S and to 12 per cent. . 

 Above 12 and to 16 per cent . 

 Above 16 and to 20 per cent. 

 Above 20 and to 25 per cent. 



3.5 ! i 

 6.4 3 

 10.5 . 



5 



7 



2.0 

 6.0 



2.6 

 6.5 

 9.9 

 14.2 

 17.0 

 22.5 

 36.6 



3 



32 



0.7 









14. 9 1 

 17.8 , 1 

 23.3 i 1 

 39.6 . .. . 



1 

 3 

 1 



15.0 

 17.0 

 22.0 









































82 





7 







175 







3 

























The average weighted per cent of annual net increase in land 

 values 33 calculated annually, for land bought and then sold, was 9 

 per cent, and for the land that was bought and held, 7.9 per cent. 

 In other words, the increase in land values was the equivalent of an 

 annually compounded interest on the original investments of 9 and 

 7.9 per cent. The net return from these 267 purchases of land 

 from increases in its value alone, therefore, has been enough to make 

 the land an attractive and safe investment, to say nothing of the 

 return in rents. 



Genera] realization of these facts has. without doubt, been a most 

 potent influence in the rapid increase in land value during the last 

 20 years. Whether or not it has resulted in speculative inflation 

 of land values is impossible to say from available data. However, 

 unless present price levels in general are maintained, there is the 

 possibility of much loss and social unrest in the present situation. 



The farmer's net surplus wealth arnnnulate.d during the year de- 

 pendfi on the amounts of his capita] thai he owns, (he labor that he 



himself call furnish, and the amounts of these he must hire. The 



ill disposable mcomes of operators, in which interest and wage-; 

 are deducted only when actually paid, are shown in item !'. Table 

 ir». These figures include all value received by the farmer from the 



labor of him elf or family on and off t he farm, and v a hies of family 



living furnished by the farm. 



.i i,\ the d eai the land « a ow ned ai 



given for each group In Table 16. 



• — 5 



