14 BULLETIN 874, U. S. DEPARTMENT OF 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.t. 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 
in towns, and to some extent may have resulted in a larger proportion of cases of purchase and sale by town - 
people than would be true if the 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. 
a 
