66 BULLETIN 341, U. S. DEPARTMENT OF AGRICULTURE. 
is somewhat smaller. The percentage of the capital represented by ai 
eash kept on hand for current expenses does not vary greatly. 4 
We shall later see that the tenants in this area make a considerably 
larger labor income than owners. The principal reasons for this — 
will be discussed later, but one of them is shown in this table. On : 
the tenant farms the proportion of the capital invested in land is — 
considerably larger than it is on owned farms. This is mainly due — 
to the fact that the tenant farms are on the average larger than the — 
owned farms. The percentage of investment in live stock is some- — 
what greater on the tenant farms, and the amount of cash to run — 
the farm is somewhat smaller. The 27 special farms, which vary — 
from farms of a few acres to some very large farms with a hothouse _ 
business which is merely incidental to the general farm business, — 
have an average capital of $12,893, considerably larger than that of 
the owner farms and about equal to the total capital—that is, invest- 
ment of both landlord and tenant—on the tenant farms. But the — 
percentage of capital invested in buildings on the special farms is 4 
much larger than it is on the others, while that in live stock is much 
smaller. The per centage of cash required for current expenses on ; 
these special farms is nearly twice as great as on. owned farms and — | 
two and a half times as great as on the tenant farms. 
EFFICIENCY AS MEASURED BY INCOME ON CAPITAL. ; 
In the preceding pages the markedly greater efficiency of the large — 
as compared with the small farm has been clearly demonstrated 
when considered from the standpoint of the labor income of the | 
farmer; but when we consider the subject purely from the standpoint 
cf the interest on capital invested the story is a different one, as is — 
seen in Table XXXII. In most parts of Europe this matter is con- | 
sidered from the latter standpoint only. | | 
TABLE XXXII.—Jncome on capital on 378 owner farms, Chester County. 
es to | 41to | 61to | 8ito | 101to | 121 to | -Over \r ai { Total | Total 
40 ea i 
Area groups, acres. -| 60 80 100 120 160 160 enant. | special. 
Number offarms..... 54] 61/ 60| 68| 52| 61] 22] 378] 194 a7 
Percentage farm in- : 
come is of capital } 
invesied = see 10.4 feo 132 12.7 12.5 12.6 11.8 12.5 ISe5 17.9 
Percentage of income 
on investment 
when value of ; 
farmer’s labor is - 
deducted.........- 4.3 8.6 9.8 9.7 9.8 10.2 9.8 9.4 10.4 14.7 
The agriculture of Europe i is based mainly on income per acre. In’ 
America more attention is given to income per farm family. The © 
reader is left to himself to judge whether it is better for the country — 4 
