14 BULLETIN 874, U. S. DEPARTMENT OP AGRICULTURE. 



69.3 per cent, was received by dwellers in towns and cities, while 

 $318,552 went to dwellers in the country. 



It appears, therefore, that during the period of unusual activity 

 the larger proportion of the gains made by purchase and sale were 

 received by urban dwellers. 1 The division of increment for all sales, 

 no matter when the purchase was made, probably represents pretty 

 closely the normal ratio of the shares of the urban and rural classes 

 in the increment of value, although probably to some extent affected 

 by the larger share of urban dwellers in purchases and sales effected 

 during the period of unusual activity. Assuming that the cases 

 studied with respect to the division of increment represent a fair 

 sample of the trend for the entire State of Iowa, and that the pro- 

 portion of farms sold was 8.9 per cent, as shown by general inquiry 

 in the 60 counties studied, we may estimate the total increase of 

 value actually appropriated by sale and divided between urban and 

 rural dwellers during the period of recent activity at $193,255,373. 

 Of this amount urban dwellers received $90,830,025, while rural 

 dwellers received $102,425,348. 



In addition to the increment appropriated by nonrural classes as 

 a result of the "boom," there also must be reckoned the gains of 

 real estate men in commissions on sales made. Of 945 sales, 687, or 

 about 73 per cent, were effected through an agent. The generally 

 prevailing rate for farm sales appears to have been $2 an acre. Since 

 the acres were very much higher in value than before the "boom," 

 this would not constitute as large a percentage on. the sale as formerly. 

 There were also, of course, some variations from this rate. The 

 average percentage of agents' commissions on the value of sales 

 for which records were obtained was 1.61. The total appropriated 

 by this\ class through commissions alone was probably above 

 $3,000,000. 



TERMS OF SALE. 



In order to determine the probable consequences of the marked 

 increase in farm land values and of the speculation in farm land, 

 it was considered important to ascertain the terms of sale. Obvi- 

 ously, if the increase of value is abnormal the consequences will be 

 more serious if a large element of credit has entered into the pur- 

 chase of the land. 



1 There is some possibility of slight exaggeration in the percentage received by persons dwelling in towns 

 and cities, on account of the fact that the records of sales were obtained by inquiry from persons dwelling 

 i n t owns, and to some extent may have resulted i n a larger proportion of cases of purchase and sale by town 

 people than would be true if tho Inquiry had been carried into the rural districts. However, since a very 

 large proportion of the farmers made their sales through agents or obtained the assistance of bankers and 

 lawyers in towns in making their transfers, it is probable that the margin of error due to this cause is not 

 very great. 



