A STAKE IN THE LAND

AMERICANIZATION STUDIES

ALLEN T. BURNS, DIRECTOR

A   STAKE
IN   THE   LAND

BY

PETER A. SPEEK

IN CHARGE, SLAVIC SECTION
LIBRARY OF CONGRESS

HARPER & BROTHERS PUBLISHERS

NEW YORK AND LONDON
1921

A Stake in the Land

Copyright, 1921, by Harper & Brothers
Printed in the United States of America

PUBLISHER'S NOTE

The material in this volume was gathered by the Division of Rural Developments of Studies in Methods of Americanization.

Americanization in this study has been considered as the union of native and foreign born in all the most fundamental relationships and activities of our national life. For Americanization is the uniting of new with native-born Americans in fuller common understanding and appreciation to secure by means of self-government the highest welfare of all. Such Americanization should perpetuate no unchangeable political, domestic, and economic regime delivered once for all to the fathers, but a growing and broadening national life, inclusive of the best wherever found. With all our rich heritages, Americanism will develop best through a mutual giving and taking of contributions from both newer and older Americans in the interest of the commonweal. This study has followed such an understanding of Americanization.

FOREWORD

This volume is the result of studies in methods of Americanization prepared through funds furnished by the Carnegie Corporation of New York. It arose out of the fact that constant applications were being made to the Corporation for contributions to the work of numerous agencies engaged in various forms of social activity intended to extend among the people of the United States the knowledge of their government and their obligations to it. The trustees felt that a study which should set forth, not theories of social betterment, but a description of the methods of the various agencies engaged in such work, would be of distinct value to the cause itself and to the public.

The outcome of the study is contained in eleven volumes on the following subjects: Schooling of the Immigrant; The Press; Adjustment of Homes and Family Life; Legal Protection and Correction; Health Standards and Care; Naturalization and Political Life; Industrial and Economic Amalgamation; Treatment of Immigrant Heritages; Neighborhood Agencies and Organization; Rural Developments; and Summary. The entire study has been carried out under the general direction of Mr. Allen T. Burns. Each volume appears in the name of the author who had immediate charge of the particular field it is intended to cover.

Upon the invitation of the Carnegie Corporation a committee consisting of the late Theodore Roosevelt, Prof. John Graham Brooks, Dr. John M. Glenn, and Mr. John A. Voll has acted in an advisory capacity to the director. An editorial committee consisting of Dr. Talcott Williams, Dr. Raymond B. Fosdick, and Dr. Edwin F. Gay has read and criticized the manuscripts. To both of these committees the trustees of the Carnegie Corporation are much indebted.

The purpose of the report is to give as clear a notion as possible of the methods of the agencies actually at work in this field and not to propose theories for dealing with the complicated questions involved.

TABLE OF CONTENTS

LIST OF TABLES

ILLUSTRATIONS

INTRODUCTION

Students of economics know that the roundabout methods of capitalistic production are far more fruitful than the direct methods of the primitive economy. As we advance, we introduce new intermediaries between the beginning and the end of production. This thought occurs to one in the study of Americanization. If we would Americanize the immigrant we must seek him out in his daily economic life and see to it that the influences under which he works are calculated to give him the right feeling toward his new home. A large part of our waking life is spent in gaining a livelihood, and our work brings with it most of our associations. School and church have their place for young and old, and they likewise must be considered. Their effect is direct and immediate and is more likely to attract attention than are the elements making up the economic life.

Doctor Speek has done well in taking up the immigrant as a settler in the newer and developing parts of our country. The settlers are very largely immigrants who are trying to acquire a home and livelihood on the land. The writer of this Introduction has been studying this same subject for many years, and has done so in many different parts of the United States. The conclusion which we might reach deductively is confirmed by observation—namely, that the man who settles on the land in the right way is, with the rarest exceptions, likely to become a good American, as are also his children.

But what do we mean by the right way? We mean that he must be on a farm of suitable size, of good productivity, with needed help in learning how to farm in the new country and with sufficient time in which to pay for his farm. These are not the only considerations, but they are the main ones, and to these Doctor Speek has given his attention.

One of the outstanding features of every study of land settlement is that the first great cause of failure is poor selection of land. The second chief cause of failure is insufficient length of time in which to pay for the land. While this is of very great importance, it stands far behind the first as a cause of failure. The third cause of failure is closely connected with the second. It is inadequate credit and capital.

We are dealing here with the results which are universal. The selection of land is extremely difficult, even for unusually intelligent farmers who have had long experience in our country. To select land wisely is quite beyond the capacity of the ordinary settler. The present writer could give unlimited illustrations of this truth. The man who has lived in the corn belt of Illinois is very apt to think that black soil is necessarily good soil, and, going to another state, may perhaps select some black peat land, underlain with sand, which is almost worthless. He is sure to be prejudiced against red soil, which may, after all, be good land. Once, when the writer was being shown citrous-fruit land in California, the wise friend who was his host would point to one orchard, which was "planted for oranges," and another "ranch" which "was planted to sell to suckers"; yet the ordinary man, even if he spent many years in the study of land values, could not tell the difference.

John Stuart Mill presents, in his Principles of Political Economy, strong arguments for non-intervention of public authority in "the business of the community." He says that those who stand for intervention must make out a strong case. When, however, he turns to the consumer or buyer, he finds he is obliged to make many exceptions to the rule of non-intervention. To use his own words,[1] "The proposition that the consumer is a competent judge of the commodity can be admitted only with numerous abatements and exceptions." He uses also these words: [2] "Is the buyer always qualified to judge of the commodity? If not, the presumption in favor of the competition of the market does not apply to the case; and if the commodity be one in the quality of which society has much at stake, the balance of advantages may be in favor of some mode and degree of intervention by the authorized representatives of the collective interest of the state."

We have, then, ample justification for some kind of help to the settler in the selection of land. What Doctor Speek presents to us simply confirms what is known to every thoughtful person who has given attention to the subject of land settlement. If we want to bring it about that our settlers should understand our institutions and become good American citizens, we must abandon all ideas of laissez-faire with respect to land selection. Generally the selection is made for the settler by the land agent. Doctor Speek gives attention to the real-estate business, and finds that it is not in a satisfactory condition. About this there can be no question. At the same time the present writer, as a result of careful observation, affirms without hesitation that probably no business has made greater progress toward a true professional level than has the land business during the last five years. Real-estate agents or brokers are forming associations and are doing a great deal to eliminate dishonest practices and to put into their business the idea of service.

There are two lines of progress especially noteworthy. One is the development of Blue Sky laws, and the other is the requirement that those who engage in the real-estate business should have licenses. Blue Sky laws do not as yet afford anything like adequate protection, but certainly they may not be disregarded with impunity in Wisconsin. Licensing an occupation has been very generally one of the first steps toward putting it upon a professional basis. Doctor Speek relates what was attempted unsuccessfully in California. In Wisconsin we are just beginning the system of licenses, and so far it promises to be extremely helpful. Much more needs to be done, however, to help the settler make a good selection of a farm.

Two outstanding movements are mentioned. One is the public-land settlement of California, under the direction of Dr. Elwood Mead, and the other is the work of the Director of Immigration of Wisconsin, Mr. B. G. Packer. Mr. Packer has been in the habit of meeting settlers in Chicago, the chief doorway into Wisconsin, and giving them advice of a general character in regard to the purchase of a farm in Wisconsin. While he is not in a position to recommend the purchase of a specific piece of land, the advice is pretty concrete and definite. His one thought very properly is the welfare of the settler, and he believes that it is in the interest of Wisconsin not to get as many settlers as possible, but to get settlers who, in his own words, "stick"—in other words, who will succeed. He does not for a moment hesitate to discourage a man from coming to Wisconsin if he is not likely to prove successful, and he does not for a moment hesitate to direct the attention of a settler away from a selection which would prove disastrous to him. The writer has visited many settlers in Wisconsin who have been brought to the state by Mr. Packer, and has found them almost universally prosperous.

However, attention should be directed particularly to an important point made by Doctor Speek in his report. At present irresponsible and dishonest people often get hold of the settler first. Mr. Packer's work is being rapidly developed and it should have still larger funds for expansion. How is it going to be possible, however, to bring to the knowledge of all the settlers the helpful agencies that exist? These helpful agencies include not only the work of Mr. Packer, but of the county agents, and the different departments of the agricultural college, especially that department concerned with soil surveys, as well as with many others.

In other states as well there are many helpful agencies for the settler. If the settler could only get hold of the men who are glad to help him he could make a wise selection of the land. Federal and state authorities must co-operate in efforts to bring to the settler a knowledge of the help that may be his.

The City and Suburban Homes Company, of New York City, affords a suggestion. This company was formed in order to give the best homes possible to people in and about New York City compatible with very modest return on capital. The idea is that of serving the urban dweller. Vast as is the field of operation, it has accomplished appreciable results in New York City. Could not companies be formed to begin where the City and Suburban Homes Company leaves off? Two possibilities suggest themselves. One is the purchase and sale of land, and the other is disinterested advice.

In this imperfect world perfection can never be attained, and with the best efforts mistakes will be made. With a strange perversity men often turn from those who are their true friends and give their confidence to the unscrupulous. A typical case is this: A man sold his small farm at a fair price. Those to whom he sold it were apprehensive lest he should waste the money and tried to help him make a wise investment. He had every reason for confidence in those who were trying to help him and who had never misled him, yet he was evidently suspicious that they were trying to serve their own ends. Shortly after receiving the money he took a journey into Canada, fell into the hands of land sharks, and lost every dollar he had received in the purchase of worthless lands.

As a business becomes professional in character, connections are established with educational institutions. Medicine and law both occur to one as illustrations. Our universities are now developing courses in land economics, and these are going to be helpful in solving the problems of land settlement, as well as other land problems.

Mention has been made of the length of time needed to pay for a farm. No mistake is more frequent than the mistake made in underestimating the length of time needed to buy a farm and to pay for it under the amortization plan—that is to say, by yearly installments, which include, with interest, a portion of the capital. Ireland affords a good illustration. As one great Land Act has followed another, the length of time for the payment of the farm has been increased, until now the amortization period is about sixty-eight years.

With the higher return to labor in this country the writer thinks twenty-five to thirty years is about right. When we have this period for payment the annual payments of principal are small and the farmer has the sense of ownership and is able to bring up his family, giving the children a good education, and enjoying life as he goes on. All plans for land settlement should include long credit payments for land purchase; also provision of shorter periods for purchase of equipment. We are making progress in the provision of rural credit, but we still have a long way to go.

A plan that should be emphasized is that we need the help of the many private agencies that have been developed. While splendid experiments are being conducted in California, so far the land settlement of that state cannot be regarded as anything more than experimental. The first purchase consisted of ten thousand acres. On the other hand, a single company in one part of the country visited by Doctor Speek is making a fine settlement of sixty thousand acres. Land settlement is extremely complex and thousands of honest men have developed skill and knowledge in the solution of its problems. We need their services and we must use every effort to protect them, as well as the settler, against dishonest and incompetent individuals, agents and companies.

The district attorney's office of New York City has achieved noteworthy success in ferreting out land frauds and affording certain protection to land buyers. Our criminal laws need further development. In every state there should be those to whom the settler can turn with his grievance. This is required for the protection of the honest land company, as well as for the protection of the settler.

When the Wisconsin Railroad Commission was established, the idea was that one should be able to write on a post card his complaint against any railroad company, and that the commission should take up and investigate the case. As Doctor Speek says, we need Federal and state commissions. These should prosecute relentlessly cases of fraud, and at the same time encourage right practices.

We hear much about unused land which ought to be brought into use. Investigations made by Mr. O. E. Baker, of the Office of Farm Management, U. S. Department of Agriculture, and others, show that the idea that there are vast stretches of really good land which are not being utilized is fallacious. It stands to reason it should be so. If I have land that is worth a dollar an acre per annum I am not likely to allow it to be unused. I have to pay taxes on the land, and I have the interest charge, which is still more important. We do have, however, a great and crying evil in the mistaken, as well as the dishonest, attempt to bring into use land which is not susceptible of profitable use by settlers, or by any private individuals, for that matter.

Probably somewhat less than half of the land of the United States can at present be profitably cultivated, and a large proportion of it has no value for the individual. Nevertheless, a large proportion of this inferior land is privately owned, and the owner is under a constant temptation to sell it to the settler. One of the chief problems we have is to take out of the market this submarginal land, which is responsible for so many ruined and embittered lives. Dishonest sale of poor land to unsuspecting settlers is a cause of Bolshevism, which we ought to fight in every possible way.

Another point made by Doctor Speek relates to access to the land. How much utter nonsense has been talked about access to the land. As Doctor Speek points out, access to the land means a great many different things. If it is to amount to anything, it means knowledge based upon experience and it means capital. There is no magic about access to the land any more than there is about access to any other occupation than farming. A man who goes into any occupation, if he is going to be successful, must have the requisite tools, the requisite experience, and the requisite capital.

The writer would like to touch upon many other points suggested by Doctor Speek's excellent report. One only, however, will be mentioned. We have spoken about the selection of land. We must also remember that those who are settling the land are those who are going to make up our rural population. Every state in the Union, as well as the Federal government, should consider the qualifications of those who are settling the land. We are going to have the experience of every European country. That is, by no possibility can everyone who would like to own a farm have one, any more than can everyone who would like to own some other business obtain it. No better illustration could be taken than that of Ireland, when visited by the writer in 1913. There was not land enough to afford farms to all those who wanted farms. A selection had to be made. As we should have agencies to help select land, we should also make a wise selection of those who are to become our land owners and cultivators in our rural communities.