Prelude to the First Edition
1. Flight from the City
II. Domestic Production
III. Food, Pure Food, and Fresh
Food
IV. The Loom and the Sewing-machine
V. Shelter
VI. Water, Hot Water, and Waste
Water
VII. Education--The School
of Living
VIII. Capital
IX. Security versus Insecurity
X. Independence versus Dependence
HOMESTEADING CATALOG
HOME PAGE
CHAPTER EIGHT
CAPITAL
JUST what to say about the capital
needed to establish a homestead is one of the most difficult matters with which I
find that I have undertaken to grapple. Yet it is one question about which I am asked
more frequently than almost any other by those who express a liking for the way of
living with which the Borsodi family has been experimenting. Before attempting to
deal with the matter, however, I think it important to dispel an illusion under which
many people who have heard about our experiment seem to labor. Typical of these people
is one man, connected with one of our agricultural schools, who assumed that because
the houses, land, machinery, and livestock comprising our homestead represented an
investment of at least $15,000 (according to his estimate), that therefore the capital
with which I began the experiment must have been $15,000. "With $15,000,"
he wrote me, "I would not need such a homestead in order to make myself independent.
Invested in stocks and bonds, that sum would furnish a comfortable living without
going to all the trouble of producing everything for one's own use on a small farm.
For most people who desire independence and security the problem is how to get the
$15,000 not what to do with it after they get it."
It is an interesting commentary upon
the tenacity with which even intelligent people maintain conventional illusions that
such a letter was written to me after the collapse of the securities market in 1929.
In spite of the collapse of the houses of cards which buyers of securities everywhere
were discovering they had erected for themselves, this man still believed that dependence
upon investments in stocks and bonds was superior to dependence upon a homestead
equipped with livestock, tools, and machinery with which a family could produce a
plentiful living for themselves no matter what happened to the business world. If
the depression should have taught him anything, it should have made him see that
stocks and bonds furnish no one real security. The only possible security in our
present chaos is direct access to the opportunity to produce for oneself the essentials
of a comfortable living.
But even if it were true, as my friendly
critic believed, that there were such things as secure securities, the point
remains that in the beginning there was no $15,000 invested in the Borsodi homestead.
Certainly I was never confronted with the alternative of investing $15,000 in stocks
and bonds or of investing it in a homestead. Yet it is true that today, after twelve
years of slow growth, the homestead does represent a large investment, an investment
much greater than the sum at which this critic valued it. It is the way in which
we started out to live, not the fact that we had the capital before we left the city,
which explains our possession today of a fairly well-equipped home. If one can lay
hands upon just enough with which to start, then a $15,000 homestead should come
ultimately by the sheer development which such a way of living makes possible.
The question, therefore, is not how
to secure $15,000, but how to secure enough with which to start. And enough with
which to start can be saved by many families, I maintain, in spite of the inequalities
and injustices of our present social system. How much, then, is really needed in
the beginning? That depends in most cases on two things: what sort of income from
"jobs" the family can depend upon while it is establishing itself, and
how much it is willing to endure in the way of hardships for the first year or two.
If the income is an average "white collar" salary, hardships can be quickly
eliminated. If the income is very much smaller, the original investment must be larger
or the family must be willing to endure a rather Spartan regime until the equipment
for producing the comforts of country life is gradually purchased. Our own experience
illustrates the principles involved.
When we left the city, we had as capital
only the small savings which we had managed to accumulate in spite of the "accidents"
which periodically prevent savings accounts from growing as they theoretically should.
In addition, I had a salary of $50 per week --not a very high one for the post-war
period. We purchased a place for $4,000, paying down $500, and arranged to pay off
the balance in monthly installments of $50. This was smaller than the rent of $65
we had been accustomed to pay in the city even when interest and taxes are included.
After paying for our place we found ourselves with hardly enough cash on hand to
move and get settled in the new place. We did invest $75 in the electric range. But
all purchases of livestock, of tools, of labor-saving comforts, had to come out of
income. Two things, however, made that income go farther in equipping the homestead
than might at first be anticipated. One was that since we spent less than we had
in the city for rent and for food, even the first year, we had more money with which
to make investments in equipment than we would ordinarily have saved out of salary.
The other was that the investments in the more expensive equipment could be made
on the installment plan. One month, for instance, we made all the purchases for our
poultry-yard--incubator, eggs and setting hens. The next month we purchased our steam
pressure cooker--which cost $25 at that time. Such purchases we made for cash out
of what we saved from week to week. When it came to installing our automatic pumping
system--an investment which ran into hundreds of dollars--we purchased it on the
installment plan and had the satisfaction of seeing it save us enough to pay for
itself month by month.
Yet in spite of the relatively small
initial investment and the modest income in the beginning, and in spite of periods
of no income or little income after I quit my job to write my first book, the homestead
grew steadily and came more and more to represent that large investment which so
chilled my skeptical critic. Eventually income began to go up as I cut down the time
I devoted to earning money, or perhaps it would be more accurate to say I was able
to secure more for my time as I became less and less dependent upon those to whom
I sold my services. That made the development of the place just that much easier,
and made it possible for us to start building the "Dogwoods" and to equip
it as experience had taught us such a homestead should be equipped. This possibility
of earning more, by needing to work less, is cumulative and is open to an immense
number of professional workers. It is remarkable how much more appreciative of one's
work employers and patrons become when they know that one is independent enough to
decline unattractive commissions. And of course, if the wage-earning classes were
generally to develop this sort of independence, employers would have to compete and
bid up wages to secure workers instead of workers competing by cutting wages in order
to get jobs.
That it is possible to start homesteading
with even less than the Borsodi family started was demonstrated to my satisfaction
by the studies I was retained to make by the Unit Committee of the Dayton, Ohio,
Council of Social Agencies in connection with the establishment of homesteads for
the unemployed of that city. These victims of the machine age had nothing in the
way of income other than part time or odd jobs, and what they were making for their
own needs through their Production Units. They had no capital at all with which to
start, except the things they had managed to hang on to in the way of furniture,
utensils, and personal belongings. Plans had, therefore, to be made, first to establish
them on homesteads at the minimum of possible investment, and then to furnish them
some sort of cash income to meet the expenses for things which they would not be
able to produce for themselves. Part-time work for others in business or industry
or professional life, and the sale of surplus produce, was expected to furnish an
income equivalent to one or two days' work per week for at least one member of the
family. With an income of between five and ten dollars per week, I estimated the
homesteaders would be able to repay the advances made to them for investment in the
homestead and its equipment, meet all ordinary expenditures for taxation, light,
fuel, transportation, and purchase essential commodities and articles which they
could not make themselves. Eventually, as their homesteads were developed they would
attain a higher standard of living than that which they had previously enjoyed.
Now in determining how much was needed
for the initial investment, the food to be produced--which determined the land area--was
the deciding factor. A typical dietary for a middle-class family of five persons
may be used as a base for this purpose, variations from it increasing or decreasing
the investment. A variation toward a vegetarian diet would both decrease the land
area and the investment in livestock; on the other hand, a variation toward a heavier
meat diet would increase the investment in these directions. The typical diets* used
in the studies I made for the Dayton Homestead Units was as follows:
| Bread, cereals, baked goods |
750 pounds
|
| Vegetables and fruits |
3,000 pounds
|
| Butter, lard and other fats |
250 pounds
|
| Sugar, honey and other sweets |
250 pounds
|
| Meat and poultry |
500 pounds
|
| Eggs |
200 dozen
|
| Milk |
1,200 quarts
|
* Since this study was made, the Bureau of Home Economics
of the United States Department of Agriculture has made the following dietetic study.
The "adequate diet' of the table might be called a "city" diet; the
"very liberal diet suggested," a diet for homesteaders.
SUGGESTED FOOD BUDGETS FOR FARM FAMILIES
YEARLY SUPPLY FOR A FAMILY OF FIVE
| |
UNIT
|
Adequate diet
recommended
when most
of food is
purchased
|
Very liberal diet
suggested when
there are good
resources for
family food production
|
| Flour, cereals |
lbs. |
1130
|
400
|
| Milk |
gal. |
360
|
400
|
| Potatoes, sweet potatoes |
bu. |
14
|
10
|
| Dried beans |
pk. |
5
|
1
|
| Tomatoes (citrus fruit) |
bu. |
5
|
10
|
| Dried fruits |
lb. |
85
|
75
|
| Other vegetables and fruits |
lb. |
365
|
1400
|
| Butter, other fats |
lb. |
200
|
165
|
| Sugar |
lb. |
180
|
200
|
| Lean meat, poultry |
lb. |
250
|
620
|
| Eggs |
doz. |
80
|
145
|
With the exception of sugar--for which
it might be possible to substitute in its entirety honey, maple sugar, and molasses--all
of this food was to be produced on the proposed homesteads. Only the food items such
as coflee, tea, spices, etc., would have to be purchased by the homesteaders. And
of course exotic foodstuffs--oranges, pineapples, oysters, olive oil--would have
to be purchased, though life could very well be maintained on whatever native foods
there were which furnished the same sort of nutritive elements.
The production of 4,750 pounds of various
foods, 200 dozen eggs, and the 1,200 quarts of milk above listed would require from
three to five acres of land. A homestead of this size would make it possible to raise
not only the food for the table, but the feed for the livestock, the livestock consisting
of 25 laying hens and 25 cockerels or capons (raised from 75 chicks); two grade or
pure-blooded Swiss goats with their four kids each year (two of these kids, the bucks,
could be slaughtered and added to the meat diet, the does being raised and probably
sold), and two hogs raised from pigs purchased each year. The bees, of which there
ought to be three or four hives, would, of course, feed themselves. A considerable
number of variations in this livestock scheme are possible without materially changing
the land area needed to raise feed. Turkeys, ducks, and other fowls may be added
or substituted for some of the chickens; sheep raised in place of hogs; a cow used
instead of milch goats. The cow would require more land than the goats; the addition
of sheep or an increase in the quantity of hogs would also increase the area of land
needed for grain and pasturage. The area devoted to the orchard and the kitchen garden
would have to be large enough to supply about 500 quarts of vegetables and fruits
to be canned and preserved for winter, or to be dehydrated if that method of food
preservation is preferred.
On a three-acre homestead, about one
and a half acres of the land would need to be put in grain for the goats, hogs, and
chickens; about a quarter of an acre into alfalfa, soy beans or some similar crop,
and a half acre reserved for pasturage. A quarter of an acre would be needed for
the corn or wheat for the family's cereals. This means about two acres for field
crops. The remaining acre would be all that was needed for the vegetable garden,
the orchard, the barnyard, the flower-gardens and lawns, and the homesite itself.
Indeed, if the family were content to live exclusively on vegetables and nuts, all
its food could be raised on this one acre of land. On this general plan, three acres
would be all that would be needed, while five acres would be a generous allowance.
If a common pasture were made available, the three acres would be ample. I therefore
suggested that the Dayton Homestead Units should consist of 160 acre tracts laid
out for between thirty and thirty-five homesteads of three acres each, with the remainder
of the land for common use.
Upon the basis of the land area and
food program above outlined, the investment needed to establish a homestead was calculated
as follows:
| Land |
$250
|
| Buliding materials for first section of home |
300
|
| Materials and equipment for other buildings |
50
|
| Well and pump |
75
|
| Tools and implements |
25
|
| Livestock |
75
|
| Seeds, plants, trees, etc. |
25
|
| Sewing and loom room |
75
|
| Preserving and kitchen equipment |
25
|
|
Total
|
$900
|
To this investment there was added
about $120 for groceries and feed for use during the first six months after movement
to the land. Assuming that the homesteading started in the winter or spring, within
six months production would develop to a point so that no further outside purchases
would have to be made for this purpose. The total investment would therefore be around
$1,000 per family. But not more than $350 to $400 of this would have to be in cash.
Farms of about 160 acres were to be
laid out for the homesteads, and were to be known as Homestead Units to distinguish
them from the Production Units already established by the unemployed in the city
itself. In the Homestead Units the group activities and cooperative manufacturing
carried on by the Production Units in the city might be continued to whatever extent
the individuals in each group desired. The whole tract of land would be owned by
the unit; title to the individual homesteads would be based upon perpetual leases,
thus preventing speculation in land. If the farm buildings already on the tract were
not suitable for use as community buildings, they would be gradually altered for
this purpose. The pasture, wood lot, and community buildings would be owned by the
unit as a whole and used by the individual homesteaders under rules and regulations
established by the group. Tractors or horses, trucks, and heavy agricultural implements
might also be cooperatively owned. Grain farming might be carried on by some units
cooperatively, just as the city units produced clothes, bread, and other goods cooperatively.
As much or as little communal life as the group desired was thus provided for, the
balance between collectivism and individualism swinging in whatever direction experience
and inclination pointed. Each family was expected, however, to build its own home,
poultry-house, cow-shed, and workshop; to cultivate its own garden, and set out its
own orchard and berry patch, and become in this new and modernized setting almost
as self-sufficient and independent as were the pioneers of the country a hundred
years ago. Trades and crafts were expected to develop and selling and bartering of
produce of which individual homesteads had a surplus, but no such emphasis was to
be placed upon this as to force a trend toward large-scale production.
The plans looked toward the building
of permanent and beautiful homes. Construction was to follow lines developed by Ernest
Flagg for the building of beautiful and inexpensive small homes. The high cost and
wastes involved in building cellars was therefore to be avoided. While building the
first wing of their homes, the homesteaders were to commute between Dayton and their
new homes, though some of them might camp out, more or less, if the farm buildings
on the site made it practicable to do so. As soon as they were on the site, they
were to begin to garden, to build their own furniture in their own workshops, to
weave cloth on their own looms, and to make their own clothes on their own sewing-machines.
Electricity was to be brought in for both light and power, and domestic machinery
and appliances used to reduce drudgery to a minimum. The crushing burdens of elaborate
water and sewage systems were to be avoided by the use of individual automatic pumps
and individual septic tanks.
Dayton, which is this year establishing
its first homestead units, is demonstrating what can be done with very little cash
even by unemployed families. But that an individual family can establish itself on
a homestead with an even smaller cash investment than provided for in the Dayton
plan was demonstrated to my satisfaction by a case with which I happen to be personally
familiar. This family consisted of a man, wife, and boy eight years old. The man
had made an indifferent living for many years as a chauffeur in and around New York,
and when out of work came to live with his parents, who had a small country home
in our section. One day he came to me with a project for building a road stand on
a plot of land belonging to me. He had, however, no capital with which to buy the
land and barely enough money to equip a stand. He asked for a lease on the lot, with
the privilege of buying it if he managed to make a success of his stand. I gave him
the lease for which he asked, and this is what happened:
He went to a local lumber-yard and
secured a large quantity of building material on credit. With this he first built
a small stand, and equipped it to sell icecream, drinks, and the usual line of roadside
refreshments. While his wife took care of the stand, he built a four-room house on
the back of the lot, though the interior was unfinished at the time he came to me
and told me that the lumber-yard was pressing him for money. I discovered that he
had gone ahead and built the house, expecting that the stand would earn enough not
only to enable him to buy the lot but to pay for the materials he used in building.
To straighten out the tangle into which his over-optimism had led him, I arranged
a mortgage for him with the building and loan association from the proceeds of which
he paid for his lot, paid for the building materials for which he was already in
debt, and then purchased enough materials with which to finish his home. His road
stand folded up and disappeared the next winter--it never did make very much money.
But in spite of this disappointment, he managed to earn enough during the periods
when he worked to meet his loan payments, to keep adding to his homestead, until
he finally had a substantial house, a garden and chicken-yard, and found himself
living at a level of comfort and security which he had never before enjoyed.
Now if a family with virtually no capital
and having to rely mainly on the earnings of occasional periods of work as a chauffeur,
can establish itself in a country home, it ought to be possible for families with
some capital and more earning power to do so. What such a family needs--in addition
to courage--according to our experience is enough capital for the down payment on
the purchase price of a place and enough cash to pay for such materials and equipment
as cannot be purchased on credit. For the rest, they must rely upon their incomes.
But that a modest income, especially during the first few years, will enable them
not only to pay for their place but to develop it into a substantial and comfortable
home, is not difficult to demonstrate on the basis of our own experience.
Assume that we are dealing with the
problem of a family having enough capital for the first payment on a suitable place,
enough cash with which to equip itself at least as well as we were able to, and with
an income of $2,500 a year--approximately the income with which we worked our first
year. Such a family living in the city would spend its income about as follows:
| Rent |
$600
|
| Food |
800
|
| Clothing, etc |
500
|
| Other expenses |
600
|
| Savings |
?
|
|
Total
|
$2,500
|
Assuming that production upon the homestead
increases gradually, and does not go as far toward self-sufficiency as is planned
for the Dayton experiment, the family budget after moving to the country would look
something like this:
| Taxes and upkeep (in lieu of rent) |
$100
|
| Food |
400
|
| Clothing, etc. |
300
|
| Other expenses |
450
|
| Available for investment in the homestead |
1,250
|
|
Total
|
$2,500
|
With the family producing its own shelter,
instead of renting it, there is a saving of $500 a year between what would be spent
for taxes and upkeep on their own home and that paid out in rent in the city. In
the case of food, a cut of 50 per cent is possible the moment the garden, the orchard,
and the chicken-yard contribute to the family larder. Between the sewing-room, the
workshop, and the laundry, substantial savings are possible on clothing and other
expenses. A fund of about $1,250 is therefore made available for investment in the
homestead and its equipment, provided the family does all of its own work. To whatever
extent servants are employed, this fund is reduced. In our own case, we much preferred
to spend a part of it for help and to make our investment at a slower rate than to
try to put so much into "saving" and take so much out of ourselves.
Surely I have said enough about the
problems involved to make it clear why it is so difficult to answer the questions
which are asked us about how much capital is needed for establishing a homestead
in the country. Whenever I am asked the question I always think of that old poser,
Which is the most important leg of a three-legged stool? The amount of capital needed
is just one part of an equation in three terms, of which the other two are the income
upon which the family can rely, and the degree to which the family is willing to
endure pioneering.
Prelude to the First Edition
1. Flight from the City
II. Domestic Production
III. Food, Pure Food, and Fresh
Food
IV. The Loom and the Sewing-machine
V. Shelter
VI. Water, Hot Water, and Waste
Water
VII. Education--The School
of Living
VIII. Capital
IX. Security versus Insecurity
X. Independence versus Dependence
HOMESTEADING CATALOG
HOME PAGE