FAKM LAND VALUES IN IOWA. 37 



lation of wealth by tenant farmers. The average labor income of 

 tenants in the Tama district was $3,053 in 1918; in addition to this, 

 the tenant was allowed $354 for his working capital, as well as the 

 value of the labor performed on the farm by members of the family 

 and the value of living obtained from the farm. Certainly the 

 favorable conditions of the war period made 2)ossible considerable 

 accumulation by tenants. In 1913, however, the average labor in- 

 come of tenants was but $1,315 in the same district. 



SUMMARY OF CAUSES AND PROBABLE EFFECTS OF THE "BOOM." 



CAUSES. 



The great attention attracted by the recent unusually rapid increase 

 in the values of farm lands and in the activity in buying and selling 

 farm land has resulted in the advancement of numerous theories in 

 explanation of these phenomena. It would be difficult to suggest 

 probable causes which have not already been mentioned in popular 

 discussion. However, it may be desirable to indicate" the relative 

 importance of the several causes mentioned, to test them so far as 

 possible by the known facts, and to suggest their mutual interrelation. 



From the standpoint of causes it is desirable to distinguish to some 

 extent the increase in activity in buying and selling from the increase 

 in values. An increase in value, if not too abnormal, may occur 

 without being accompanied by any considerable increase in buying 

 and selling activity. In fact, a steady increase in value was taking 

 place prior to the beginning of the "boom" of 1919. However, it is 

 clear that the increase in value and the increase in sales activity were 

 due in part to identical causes during the spring and summer of 1919, 

 and, moreover, the increase in values and increase in sales activity 

 mutually influenced one another — that is, the increase in value 

 tended to stimulate activity in buying and selling, while this activity 

 in turn reacted upon values. 



Foremost as a cause is the fact that farm income, as a result largely 

 of war prices for farm products, increased for a time more rapidly 

 than land values. This fact is clearly established by the analysis of 

 farm incomes. (See above, p. 21.) 



This truth was'sometimes expressed in popular discussion by the 

 statement that there was "little or no increase in land values during 

 the war period, and an increase was, therefore, about due." This is, 

 of course, but a half truth, for it has been shown that there was a 

 probable average increase of approximately $15 per acre during the 

 period from March, 1918, to March, 1919, if this may be taken to 

 comprise a greater part of the war period. If the latter term is em- 

 ployed to coincide with the entire duration of the European war — 

 from 1914 to the beginning of 1919 — there was undoubtedly a much 

 larger increase. 



