(^ H(k^051 iliiili ^tate CoIlcBe of Agriculture iat Cornell Winibtt&itp Stjata, M. g. 1Li6rarj> ^n^rrrn «^^^™ {'"'^'o.'iir RURAL CREDITS SPEECH DELIVERED BEFORE THE COMMITTEE ON BANKING AND CURRENCY HOUSE OF REPRESENTATIVES BY MR. GRANT S. YOUMANS fel mJ^i i PRESENTED BY MR. Mc CUMBER March 9, I9I6.— Ordered to be printed WASHINGTON GOVERNMENT PRINTING OmCE 1916 Cornell University Library The original of tiiis book is in tine Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924013989300 RUEAL CEEDITS BILLS. By Geant S. Youmans, of Minot, N. Dak., Special Legislative Representative of the Members of the North Dakota State Union of the American Society of Equity and aM of Its Afflliated Farm Associations. [Hollis, S. 2986 ; Moss, H. R. 6838.] Mr. Chairman and gentlemen of the House Committee on Banking and Currency, you are now considering H. R. 6838, generally called the Moss rural-credit bill, which is substantially the bill introduced in the Senate as S. 2986 by Senator Hollis, and which last bill has, with amendments, been reported from the Senate Committee on Banking and Currency. These two bills are the outcome to the present time of the labors of the respective committees and of the Joint Committee on Rural Credits, created by act of Congress at the last session. I appear before you as the special legislative representative of the members of the North Dakota State Union of the American Society of Equity and of all of its affiliated farm organizations. I represent in this capacity probably 100,000 farmers — members of these or- ganizations. The long-admitted need with respect to rural-credit legislation has been widely discussed in this country for years. Expensive com- missions have studied our local conditions. Other more expensive commissions have traveled abroad and submitted, voluminous reports. Party platforms and utterances of high officials have made frequent pledges to the farmers of this coimtry, and the present bills are sup- posed to be a start to the answer. I have carefully considered, and now most earnestly protest, a very solemn protest if you will, on behalf of the farmers of the North- west against these fake bills. They are not even a partial answer to the long-delayed need for proper legislation on this subject, The fact that these bills were under consideration and that one of them had been reported at first gave comfort and hope to the farmer. But when we come to examine their provisions we discover what a mockery they are. A study of these bills leads me to say that they look more like a poorly disguised attempt to defeat this legislation than to promote it. However, the answer is yet with the committee and with Congress. That fact is the reason for this discussion. Let us see. Even the most ardent champions of the legislation can but admit that its provisions are clumsy, cumbersome, and provide an enormous amount of useless machinery to do a very simple thing. 3 RUEAL CREDITS. STATE LEGISLATION. In support of the statement that the bill is intended to make an effective rural-credit system of nation^al scope impossible of accom- plishment, let us examine section 31 of S. 2986 and section 32 of H. E. 6838. The Federal Farm I^oan Board, whose, multitudinous duties and powers will be later considered, appoint a farm loan commissioner. By the provisions of section 31, it is made the duty of the farm loan commissioner — • to make examination of the laws of every State of the United States and to inform the Federal Farm Loan Board as rapidly as may be whether In his Judgment the laws of each State relating to the conveying and recording of land titles, and the foreclosure of mortgages or other Instruments securing loans, as well as providing homestead and «ther exemptions and granting the power to waive such exemptions as respects 13rst mortgages, are such as to assure the holder thereof adequate safeguitrtls; against loss in tlie ovont of default on loans secured by any such mortgages. It is then provided that — ■ pending the making of such examination in the case of any State, the Federal Farm Loan Board may declare first mortgages on farm lands situated within such State ineligible as the basis for an Issue of farm-loan bonds. Assuming that this board is composed of men earnestly desirous of carrying out the provisions of this elaborate and costly system, and of using its provisions in the establishment of a system of rural credits, it must be apparent to every thoughtful person that under the provisions quoted, no such board, however honest they might be, could do other than enter as one of their first orders that "first mortgages on farm lands situated within (every State) are in- eligible as the basis for an issue of farm loan bonds." This is ap- parent for the reason that it is made the duty of the farm loan com- missioner to first make the examination of the laws of every State. This farm loan commissioner is appointed by the Federal Farm Loan Board. He must report upon such laws to such board, and while the wording is " may," so far as the action of the board is con- cerned in declaring such first mortgages ineligible, the word is "shall" in respect to the duty of making this investigation by the farm loan commissioner before any action is taken by the board. The result must necessarily be that the action of the board must be taken upon the report of the commissioner, and that until such report is made no affirmative action making such mortgages eligible for farm-loan bonds could be consistently taken by any self-respect- ing and intelligent board called upon to administer the provisions of this law. By the further provisions of this same section it will be discovered that this farm loan commissioner becomes clothed with large powers with respect to his report upon such laws. EXPENSIVE SPECIAL COUNSEL. This same farm loan commissioner may employ special counsel in every State. Special counsel is usually rather expensive. If a governor of a State wants a statement setting forth in what respects the requirements of said board can not be complied with under the laws of such State, the board must prepare such statement. EURAL CREDITS. 5 How can such statement be prepared until the farm loan commis- sion has taken the advice of his special counsel and made his inves- tigation ? Being under the necessity, in self -protection, to say that until they have made such investigation the laws of all States are insufficient, it becomes plain that from 4 to 40 years would necessarily have to elapse before the laws of the several States could be brought into harmony with the ideas of the farm loan commissioner and the Federal Farm Loan Board, if it ever could be done. ; Tn the meantime the personnel of the board changes and its notions of adequate laws change. Many States would likely refuse to be dictated to by such a Federal board. A mere statement of these difficulties and the experience of strong organizations endeavoring to simplify and unify the most obvious commercial laws will show the impossibility of these laws ever being made to satisfy the views of the five men who might be selected to become the Federal Loan Board, thus depriving the farmers of those States from any opportunity to use the system. STATE LAWS SUFriCIENT. If the guaranties provided and required by the act respecting bonds and mortgages authorized, issued, and sold by the respective farm loan banks or loan associations in different States are to be treated as of any worth whatever, such laws should be satisfactory if satisfactory to the loan bank guaranteeing the loan or the mort- gage and its security. For these reasons, I say at the outset that this single provision in this bill is sufficient to make it plain that such act can not be consid- ered seriously as intending to provide a prompt, efficient, and ade- quate measure for a system of rural credits. FEDEKAL RESERVE ACT EXPENSES. It is plain from an examination of the bill that it is designed upon the general model of the Federal reserve act. It provides for a Federal Farm Loan Board of five members, four of whose salaries alone will aggregate $40,000 a year. There are in continental United States about 8,000 national banks, members of the Federal Eeserve System. The expenses of the Federal Eeserve Board alone are about $216,000 a year. The salaries of its employees amount to $108,650 per year, and the salaries of the examiners who examine the banks in the Federal Eeserve System amount to $396,000 per year. The expenses of the Federal reserve banks, of which there are 12, were last year $1,490,729. The estimated expenses of these same banks for next year are $1,611,000. These expenses include such items of salaries as governor, ranging from $30,000 a year to $7,500 a year ; members of the staff from $12,000 a year, with various head men at four, five, six, eight, and ten thousand a year. In fact, the Federal Eeserve Board admits in its report, Decem- ber 31, 1915, Document No. 442, Sixty-fourth Congress, first session, that several of these banks are overorganized in their high-salaried lists. 6 KUEAL CEEDITS. But these expenses, great as they are, were founded on the mobil- ization and concentrated organization of the business of 8,000 na- tional banks already established and existing. There are about 20,000 State and private banks, including 1,660 loan and trust companies, scattered throughout the country. Still, in the face of all these facts and conditions it is not pro- posed by the provisions of this bill to use any part of existing financial agencies, but to create an additional burdensome system for the farmers to support. FARM LOAN ASSOCIATIONS. The bill seems to assume that farm-loan associations composed of "borrowers" will be promptly organized either on the limited or unlimited plan, and that by this means both a surplus and " capital " will be supplied. Such associations can have neither income nor capital except it be supplied by the farmers. An association composed of borrowers alone can rarely supply either. These farm-loan associations may assess the farmers for " interest, dues, and other sums," and fix the interest rate at the limit of the interest charged by national banks. This in effect would make the interest charges to the farmers higher than those afforded by estab- lished institutions. For information as to interest rates, commissions, and other data see tables in appendix, which were submitted by Secretary Houston before the joint committee November 13, 1915. It is thus seen that this feature of the bill, not taking into account inertia or local opposition, is practically impossible of successful working out. These farm loan associations are a poor attempt to follow the plan of building and loan associations, so many of which failed a few years ago on account of expenses and inability to provide capital from borrowers alone. JOINT-STOCK LAND BANKS. The provisions with respect to these so-called joint-stock land banks furnish an additional scheme to " farm the farmer " by the creation of a number of large banks flying the flag of the Federal Government. These must have a capital of $250,000 in every State, and if the State has more than 2,000,000 population they must have a capital of $500,000. If the farm loan associations, in connection with the farm-land banks, are to produce any effective results, they would be in direct competition and in continuous opposition with these joint-stock land banks, so the result would be that the best loans would be secured by the joint-stock banks, as being more nearly in accord with the present experience and customs of farmers seeking loans in this country, and for the further reason that such loans would not have the burden of the requirements of the 5 per cent " stock purchase," as in farm loan associations, nor the indefinite, undetermined, and BURAL CREDITS. 7 indeterminate dues, fees, expenses, etc., to which such loans and the borrower thereunder are liable. Neither is either form of banks nor the loan associations under the biU permitted to accept deposits or do any banking business. The scheme adds nothing to the banking facilities now notoriously inadequate for the farmer and farming communities. SAVINGS BANKS. The only feature in the bill which would promote thrift and fru- gality and which might in time develop the necessary capital for a large part of the operation of a rural-credit system — the savings section — ^has been omitted from the joint committee bill as reported from the Senate Committee on Banking and Currency (S. 2986). Neither is any provision made for the investment or use of postal savings funds in farm-loan bonds. It seems that no really valid reason can exist against such use of postal deposits. They bear a low rate of interest. Even in times of stress such deposits are not all wanted at once. They are made mostly by workers in mines and factories. These farm loan bonds would be a perfectly safe invest- ment and would bring to the Government a great profit to be used in further loans; or, if this was not desired, they could be offered to postal savings depositors as having been supervised and carefully issued and offering a higher rate of interest than postal savings banks pay- GENERAL OBSERVATIONS. Instead of being a piece of genuine rural-credit legislation the system provided is only a shadowy substance floating in a sea of finance with neither chart, compass, nor sailing orders. It is simply a head, the Federal Farm Loan Board, resting upon nothing. This head must develop its own body, temporarily using the funds of the Federal Government in the meanwhile, while it attempts to find out through the farm loan commissioner whether there are any safe landing places under the land laws of the several States. The admin- istrative features are overweighted with offices and salaries. It provides that there can be no farm loans under this system until there are borrowing-farmers' loan associations, and there can be no borrowing-farmers' loan associations until there is a group of bor- rowing farmers who are willing to buy stock in such associations and pay the undetermined fees, costs, and expenses which may be incurred. These farm-loan associations may not act directly as a means of collecting the savings and available investment funds of the com- munity and as a medium between the investor and borrower, but must, by the terms of the act, be composed of borrowers alone. In general, hardly a farmer in the United States could avail him- self of the elaborate apparatus attempted to be created by this bill. The bill could be nothing else than a failure and its passage merely block the way to a straightforward rural-credit system or systems. The opponents of real practical legislation would point to the ex- istence of this law and its unused provisions and solemnly assure » KITBAL CREDITS. the country that it was the result of many commissions, probably half a million dollars of expenditure, and that it was costing, even though unworked and unworkable, perhaps $500,000 a year, and yet was not being used by the farmers of the country, without stopping to explain that its provisions make such use impossible of successful accomplishment. These are but a few of the serious and insurmountable objections to the bill as drawn. An examination of the bill discloses numerous limitations and re- strictions upon the operation of the proposed system. The dangerous character of the bill is nowhere better illustrated than in the specification of the extensive and, m many cases, senseless powers of the Federal Farm Loan Board, here briefly set out : Powers of Federal Farm Loan Board. Section 3. To appoint a farm loan registrar in each of 12 districts. To appoint one or more land bank appraisers. To appoint special appraisers as deemed necessary. To fix compensation of land bank appraisers. To employ attorneys, experts, assistants, clerks, laborers, and other employees and fix their compensation. Change and fix salaries and compensation of employees of each Federal land bank. Make annual report to the Speaker of the House of Eepresenta- tives. Require examination and report of conditions of all associations and banks established under the provisions of this act. Make appraisals of farm lands as provided by this act. Prepare and publish amortization tables to be used by associations and banks under its supervision. Eequire by suitable rules and regulations that offenses under this act be reported to it and to the United States district attorney. Institute immediate proceedings in proper court for prosecution of any person committing an offense under the act. Prescribe the form for the statement of condition of associations and banks under its supervision. BULLETINS, ETC. Prepare from time to time bulletins setting forth the principal features of this act and to distribute same, ■" particularly to the press, to agricultural journals, and to farmers' organizations." Prepare and distribute circulars in the same manner setting forth the principles and advantages of amortized farm loans and the pro- tection afforded debtors under this act. Instruct farmers how to organize and conduct farm loan associa- tions. Advise investors of the merits and advantages of farm loan bonds. " Disseminate in its discretion information for the further instruc- tion of farmers regarding the methods and process of cooperative credit organization." RURAL CREDITS. 9 Use a reasonable portion of the organization fund provided by section 36 ($100,000) for these objects (from bulletins down to this point). Make recommendations to Congress for further appropriations to carry out said objects (from bulletins down to this point). Section 4-. Divide continental United States, excluding Alaska, into 12 dis- tricts. Increase the number of these districts and to readjust their bound- aries from time to time. (No Federal land bank shall be established with less than $500,000 capital stock.) Establish in each district a Federal land bank. Approve the establishment of branches of such bank within its district. Appoint five directors to temporarily manage such bank, and fix their compensation. Fix the compensation of the employees of the Federal land bank. Direct changes or additions in organization certificate of Federal land bank. Supervise and regulate manner of the transfer of stock in farm loan banks. Appoint two directors of each farm loan bank. Designate one of such directors as chairman of the board of di- rectors. Fix the compensation of boards of directors and of officers and employees of the Federal land bank. Section 5. Prescribe the times and condition of payment of subscription to capital stock in such banks. Reject any subscription in its discretion. Require subscribers to furnish adequate security for the payment of such subscription. . Direct the farm loan commissioner to vote the stock of the United States for such bank. Open books of subscription for capital stock to such banks in each Federal land bank district. Fix the time for the call of such subscriptions as are made by the Secretary of the Treasury. Section 7. May fix compensation for secretary-treasurer of farm loan asso- ciation. Require such secretary-treasurer to furnish suitable surety bond as prescribed and approved by it. Provide the forms for quarterly report of such secretary- treasurer. Require such secretary-treasurer to carry out " duly authorized orders of said board." Fix, increase, or reduce the salary of such secretary-tieasurer. Refuse charter to farm loan association. Designate the territory in which such association may make loans. 10 RURAL CREDITS. Section 9. Make deductions from sums deposited by applicants for member- ship in farm loan associations limited where the loan is rejected. Section 10. Make deductions from deposits where application for loan is re- jected in national farm loan associations unlimited. Section 12. Define the term " equipment " on farms. Define the term " improvements " on farm lands. Prescribe the form to be used by applicants for loans. Prescribe the form and condition of an agi'eement to be made by applicants for loans to use such loans for the purposes specified in original application. Section 13. Power to deny the use of farm loan bonds by Federal land banks. May give approval for a farm loan bank to hold lands longer than five years taken in satisfaction of judgment decrees or mortgages. Section 15. To denay a shareholder in a national farm loan association the right to borrow money on a farm land mortgage, though funds for such purpose may be available in that farm land district. Section 16. To create a special department in a Federal land bank for the issuance of farm loan bonds unlimited. Section 17. To designate agents where farm loan associations are not organ- ized and to authorize Federal land banks to make loans on farm lands through agents approved by said board. To terminate the operations of such agents. Section 18. To issue a charter to a joint-stock land bank on subscriptions if capital stock of at least $250,000, but in States having populations exceeding 2,000,000 such capital stock shall not be less than $500,000. (The following are such States, according to World's Almanac, page 667, 1916 edition: Alabama, California, Georgia, Illinois, In- diana, Iowa, Kentucky, Massachusetts, Michigan, Minnesota, Mis- souri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia, and Wisconsin.) Prescribe the form and color of farm loan bonds. Prescribe the distinguishing marks of such farm loan bonds. RUEAI, CREDITS. 11 Section 19. Prescribe rules and regulations respecting the examinations and reports upon land offered for security for a mortgage loan. Require special appraisal if any Federal land bank or joint-stock land bank desires to issue farm loan bonds. Define the nature of such examination. OfScially approve the issue of such farm loan bonds. Prescribe the form for appraisal reports for farm loan asso- ciations. Direct the nature of examinations, appraisals, and investigation of land bank appraisers and special appraisers. Section 20. To organize and charter Federal land banks. To organize and charter national farm loan associations. To organize and charter joint-stcck land banks. To review and change at discretion the rate of interest to be charged by Federal land banks. To grant or refuse to Federal land banks authority to make any specific issue of farm loan bonds. To grant or refuse joint-stcck land baftks authority to make any specific issue of farm loan bonds. To make rules and regulations respecting the charges made to borrowers on loans for appraisals, examining title, drawing legal papers, recording, and similar services. To require reports and statements of condition of banks doing business under the provisions of this act. To require reports and statement of condition and make exam- ination of associations doing business under this act. The prescribe the form and terms of farm loan bonds. To prescribe the form and terms and penal sums of all surety bonds. To prescribe the financial loss covered by such bonds as well as faithful performance of duty. To require Federal land banks to pay equitable proportion ad- vanced to pay the coupons of any other land bank. To exercise such incidental powers as " shall be necessary or requi- site to fulfill their duties and carry out the purposes of this act." Section 21. To specify the information required in a schedule of mortgages made by Federal land bank or joint-stock land bank. To cause special appraisers to make investigation and appraise- ment of the securities held by a Federal land bank and offered as security for farm loan bonds. To transmit its decision as to the issue of farm loan bonds by farm loan banks. Require the farm loan registrar of the district to submit any re- quired information respecting any issue of farm loan bonds. 12 EUBAL CREDITS. Section ^2. To fix the deposit ^'ault or bank in which mortgages to secure farm loan bonds shall be deposited. To require at any time additional security of any land bank to pro tect the bonds issued by it. Section 2S. To give authority and direction for the issue of all bonds provided for. To fix the amount and term of any series of such bonds. To fix the form of such bonds and the circumstances and manner in which they shall be paid and retired. To fix the form and tener of such bonds. To provide for the exchange or reexchange of such bonds. To levy semiannually sufficient sum to cover the expense of bonds issued by JFederal land banks. To levy semiannually a sufficient amount to cover expenses of bonds issued by joint-stock land banks. Section 24. Binds the Federal land bank by all acts of its officers and of the Federal farm loan board in signing and issuing farm loan bonds. May assess solvent banks for losses on such bonds. Section 25. Provide rules and regulations for the payment of any farm loan bond or coupon, or interest thereon, by any Federal land bank. Section 27. To order and direct the investment of the reserve of each farm loan association. Section 31. May declare " farm lands situated within (any State) ineligible as the basis for an issue of farm loan bonds." To make an examination of the laws of any State and to declare first mortgages on lands situated in such State ineligible during the continuance of laws in question, held by the board not to afford sufficient protection to the holders of first mortgages. To authorize farm loan commissioner to call upon the Attorney General of the United States for legal advice or assistance. To authorize the farm loan commissioner to employ special coun- sel in any State. To prepare at the request of the executive of any State a statement setting forth in what respects the requirements of said board can not be complied with under the existing laws of such State. Section 32. May appoint as many land bank examiners " as in its judgment may be required to make careful examination of the banks and associations permitted to do business under this act." Fix the salaries of such examiners. RURAL CREDITS. 13 Section 34. Request the Secretary of the Treasury to make advances or deposits for the temporary use of any Federal land bank out of any money in the Treasury not otherwise appropriated. Require such Federal land bank to execute a certificate of such advance and to pay same at the direction of the Federal Farm Loan Board. Section 36. To declare any national farm loan association insolvent and ap- point a receiver therefor. To direct the receiver to take possession of the books, records, and assets of such associations. To direct such receiver to compound or settle doubtful debts and to fix the terms therefor. To require such receiver to pay the sums collected to the Treasurer of the United States, subject to the order to the Federal Farm Loan Board. To require such receiver to make report to such board of all his acts and proceedings. To declare insolvent Federal land banks and joint-stock land banks and to close the same up, as provided for Federal loan associations. To fix the amount of the contingent liabilities of any farm loan association. To give written consent to the dissolution of any national farm loan association. To give written consent to the dissolution of any Federal land bank. To give written consent to the dissolution of any joint-stock land bank. Section 36. To expend the $100,000 organization fund appropriated in said section. In conclusion, Mr. Chairman, and gentlemen of the committee and of Congress, I desire to make the direct charge, not, however, with- out first having made a careful analysis of these bills from the viewpoint of the farmer, that this Moss-Hollis rural credit bill is not a farmers' bill. Far from it. It is simply another bankers' bill. Of course, it is claimed that the bills were designed especially for the benefit of the American farmer, where, as a matter of fact, these bills, the provisions of which, if used by the farmers, would benefit only established money-lending agencies — ^banks, loan, trust, and insurance companies, etc., and the investors of trust and private funds. On the other hand, gentlemen, if you as Members of Congress are sincere in a determination to serve the farmers of this country in general, and throughout the Northwest, for whom I can speak directly, if you wish to help provide them with a simple, direct, and inexpensive plan or system of rural credits, you will most certainly refuse to enact this fake rural credits bill now before Congress. APPENDIX. Farm loans by hanks and insurance companies. (Figures represent thousands of dollars.) Geographic divisions.' Value of farm land and buildings.2 Estimated total farm mortgage debts.a Farm mortgages held by insurance compa- nies.! Farm mortgages held by hanks.* Personal and collateral loans by banks to farmers.' Farm mortgages "handled" by bank." New England $718,546 2, 442, 949 8,873,992 11,614,666 2,486,436 1,738,398 3,128,697 1,319,397 2,478,146 $80,644 313, 1£6 944, 436 1,376,903 163,155 127,135 299,614 101, 285 203,757 $1,702 666 121,076 426,960 22,930 22,871 72,685 12, £32 14,226 $84,900 30,900 220,000 216,400 40,800 33, 600 27,900 19,800 66,200 $16,890 67,400 325,030 588,120 161,220 76,630 204,310 86,660 93,820 SIO Middle Atlantic 2,040 East North Central 123,360 West North Central 282,710 19,920 4,710 West South Central 18,760 Mountain 17, 300 17,780 Total 34, £01, 126 3,598,985 695,636 739,600 1,609,970 486, 680 1 For States comprised in the several divisions, see next table. 2 Thirteenth Census figures. 3 Estimates based on Thirteenth Census figures, assuming that the ratio between the mortgage debt on farms operated by their owners and the total value of all such farms holds good for tenant farms also, * P'igures actually reported fin October, 1915) by 220 life insuranre companies, comprising five-sixths of the total number in the United States and having more than 99 per cent of the total admitted assets. 5 Estimates based on renorts receieed from banks in the spring of 1914. « Farm mortgages negotiated by banks or bank offlcials as agents or correspondents for other investors. Estimates based on reports received from banks in the spring of 1914. Farm loans hy hanks and insurance companies, with supplementary data. [Figures represent thousands of dollars.] Geographic division and State. Value of farm land and build- ings.' Estimated total farm mortgage debt (maxi- mum; see note).' Farm mort- gages held by insur- ance com- panies.' Farm mort- gages held by banks.* Personal and col- lateral loans by banks to farmers.' Farm mortgages "handled" by banks.' United State.s 134,801,126 $3,598,985 $695,536 $739,500 $1,609,970 $486,580 New England: Maine 159,620 85, 916 112,588 194,169 27. 933 138.319 '13,727 6,100 17,113 24,077 2,614 17,013 15 6,000 12,500 46,700 8,700 6,000 6,000 5,000 1,050 7,010 2,370 80 1,380 New Hampshire 13 9 Massachusetts 10 Rhode Island Connecticut 1,665 Total 718, 545 80,644 1,702 84,900 16,890 10 Middle Atlantic: New York 1,184,746 217,135 1,041,069 168,234 36,610 109,312 128 222 206 18,200 2, 600 10,100 23,990 7,480 35, 930 1,150 30 860 New Jersey Total 2,442,949 313,156 656 30,900 67,400 2,040 ' Thirteenth Census figures. 2 Estimate based on Thirteenth Census figures, assuming that the ratio between mortgage debt on farms operated by their owners and the total value of all such farms holds good tor tenant farms also. It is pos- sible that this ratio may be too high for the tenant farms la some of the States, in which case the estimates will be too large; but even if this is the case, the figures presented have considerable value as representing the maximum amount of farm mortgages probably outstanding in the census year. 'Based on reports reiently received (in October, 1915) from 220 insurance companies comprismg five- sixths of the total number in the United States and havuig more than 99 per cent of the total admitted ' Estimates based on reports received from banks in the spring of 1914. 'Farm mortgages negotiated by banks or bank offlcials as agents or correspondents' lor other investor?. Estimates based on reports received from banks in the spring of 1914. 14 RUBA], CKEDITS. 15 Farm, loans hy banks and insurance companies, with supplementary data — Con. G eographlo division and State. Value of farm land and build- ings. Estimated total farm mortgage debt (maxi- mum; see note). Farm mort- gages held by insur- ance com- panies. Farm mort- gages held by banks. Personal and col- lateral loans by banks to farmers. Farm mortgages "handled" by banks. East North Central: riiip $1,664,152 1,594,276 3,622,793 901,138 1,201,633 $130,678 132,325 355,802 118,950 206,681 $17,073 48,789 51,046 1,706 2,461 $26,200 52,000 56,200 44,900 40,700 $43,600 64,930 138,140 33,580 44,780 $1,360 14,590 87,530 6,640 Indiana 13,240 Total 8,873,992 944,436 121,075 220,000 325,030 123,360 West North Central: 1,262,441 3,257,379 1,716,204 822,657 1,005,081 1,813,347 1,737,656 145,181 469,063 223,107 100,364 92,467 165,015 180,706 35,577 150,150 59,699 19,423 31,024 66,614 64,473 43,600 104,800 34,900 5,000 6,200 10,400 11,500 79,120 187,070 67,040 46,070 40,480 85,600 82, 740 43,020 70,230 31, 170 North Dakota 42,370 43,190 19,680 33,150 Nebraska Kansas Total 11,614,666 1,375,903 426,960 216,400 588,120 282 710 South Atlantic: 53,166 241, 737 8,231 632,058 264,391 456,625 332,888 479,204 118, 146 6,867 32,393 46 492 670 1,600 6,000 6,260 18,470 Maryland 310 Virginia 25,007 8,725 21,005 24,967 29,711 4,490 5,000 1,700 6,900 9,000 8,000 2,600 29,770 8,310 21,280 19,890 41,430 5,810 570 West Virginia 23 2,267 3,884 15,479 69 30 North Carolina 2,200 3,180 South Carolina 12,280 Florida 1,350 Total 2,486,436 153,165 22,930 40,800 151,220 19,920 East South Central: Kentucky 636,469 480,523 288,254 334,162 41,305 25,468 25,943 34,419 7,170 10,674 1,771 3,256 13,300 4,000 3,700 12,600 29,200 23,660 15,250 8,520 2,580 840 750 540 Total 1,738,398 127,135 22,871 33,600 76,530 4,710 West South Central: Arkansas 309,167 237,544 738,677 1,843,208 21,023 21, 141 73,129 184,321 4,259 1,500 29,065 37,861 5,700 9,000 2,100 11,100 10,960 12,360 61,260 129,730 1,250 2,610 Louisiana - - 6,560 8,i540 Total 3,128,597 299,614 72,685 27,900 204,310 18,750 Motmtain: MnTit^Tm. 251,626 245,066 97,915 408,519 111,831 47,285 117,545 39,609 17,111 21,566 7,148 36, 767 4,685 4,161 6,818 3,129 3,518 2,948 487 3,135 1,191 376 862 15 5,200 2,200 1,200 2,100 400 1,600 6,000 1,100 20,300 13,290 10,010 19, 910 4,600 6,350 7,010 .5,280 7 850 4,980 830 1,740 New Mexico 390 Arizona. 1,070 Utah . .. 340 100 Total 1,319,397 101,285 12,532 19,800 86,650 17,300 Paotflc: "W ashington 571,968 465,576 1,450,601 43,470 35,535 124,752 3,087 1,091 10,047 5,000 4,100 56,100 24,510 17,020 62,290 11 110 Oregon 2 910 Calilornia 3^760 Total 2,478,146 203,757 14,225 65,200 93,620 17,780 16 EUKAL CB.EDITS. Interest, commission charges, and other data. [Data obtained in 1915, but representing normal conditions, sucli as prevailed before the European war. J Geographic divir sions and States. New England: Main3... New Hampshire Vermont Massachusetts... Ehode Island... Connecticut..-;. Middle Atlantic: New York New Jersey Pennsylvania... East North Central: Ohio Indiana Illinois Michigan Wisconsin West North Central: Minnesota Iowa...'. Missouri .North Dakota. . South Dakota. . Nebraska Kansas South Atlantic: Delaware Maryland Virginia West Virginia... North Carolina. . South Carolina. . Georgia Florida East South I entral: Kentucky Termessee Alabama Mississiprii West South Central: Arkansas Louisiana Oklahoma Texas Mountain: Montana., Idaho Wyoming Colorado New Mexico Arizona Utah Pacific: Washington Oregon CalilomJa Farm mortgage loans. Aver- age in- terest rate. 6.1 5.3 5.6 5.6 5.7 5.7 5.5 5.5 6.5 5.8 6.7 6,3 6.7 6.3 5.6 6.2 6.9 7.0 6.3 6.1 5.6 5.7 6.1 6". 2 6.3 7.8 7.6 9.0 6.7 7.3 8.7 8.0 9.0 8.2 8.4 8.2 9.2 8.3 9..7 9.1 7.9 7.7 7.4 Aver- age an- nual com- mis- sion.! 0.1 (») m .2 m .1 1.8 1.0 in A .7 .2 1.4 .6 1.1 .6 .4 1.6 .7 Inter- est plus com- mis- sion. 6.2 5.3 5.6 5.6 5.9 5.7 5.6 6.8 5.8 6.1 6.2 6.0 6.8 5.9 6.8 8.7 8.0 7.1 5.6 6.1 6.8 6.4 7.7 8.4 8.7 9.6 7.1 7.9 9.4 8.5 8.4 9.0 10.0 8.9 10.0 8.9 10.5 9-4 9.0 8.7 8.0 7.6 Aver- age t^m, years. 4.0 7.0 4.9 4.1 3.2 1.7 5.7 2.7 3.9 4.0 4.9 4.8 4.9 4.9 5.1 5.1 4.7 5.0 4.8 4.9 5.1 4.6 3.3 3.3 2.4 2.5 2.9 4.3 1.8 2.6 3.3 2.8 2.7 3.5 3.1 5.4 4.6 4.9 3.5 4.1 3.2 2.4 6.0 3.2 Short-time loans, On personal security. On collateral security. Aver- age in- terest rate. 6.5 6.0 5.9 6.0 6.1 5.9 5.9 6.8 6.4 6.9 6.6 7.1 e.5 8.3 7.5 7.7 11.0 9.8 8.8 7.5 6.0 6.0 6.3 6.2 6.6 8.3 9.6 9.2 7.3 8.1 10.0 8.7 9.9 9.0 12.5 10.2 11.1 10.4 10.2 10.6 11.4 10.0 8.8 8.4 8.4 Aver- Aver- Aver- Aver- age to- age age in- age to- tal term, terest tal cost .2 months. rate. cost.' 7.7 7.5 6.5 8.0 6.4 8.7 6.2 6.6 6.4 5.9 6.8 7.2 6.5 5.7 6.1 6.1 7.1 8.0 7.2 8.4 6.2 5.1 6.8 e.4 7.0 7.1 6.9 7.2 6.6 5.9 5.9 7.0 6.9 6.9 6.9 7.2 7.2 7.9 6.6 7.6 7.6 7.1 7.0 8.6 7.4 6.4 6.7 8.3 9.2 6.5 6.9 9.8 7.0 7.2 6.6 7.1 9.2 7.0 8.6 9.4 7.9 7.2 7.5 8.1 8.8 6.4 7.6 9.0 11.8 7.6 11.0 12.1 10.6 6.7 9.7 10.6 9.3 6.8 9.0 9.6 8.8 6.3 8.3 9.0 6.2 5.9 5.8 5.8 7.0 6.4 6.0 7.0 8.2 7.1 6.4 8.5 6.9 7.1 6.3 7.2 10.2 8.1 6.7 10.6 10.5 7.6 8.5 10.9 11.8 7.7 10.1 12.3 11.4 7,1 9.5 11.2 8.8 8.2 7.6 9.1 9.9 8.0 8.4 10.2 12.4 9.1 10.0 12.8 10.8 9.5 8.6 11.5 12.4 8.1 10.6 13.3 11.1 9.1 8.7 11.1 15.6 5.6 13.6 16.7 12.2 6.4 10.4 13.1 12.1 6.1 11.0 12.6 11.5 5.2 10.2 11.8 11.0 6.5 10.0 10.7 11.5 5.6 10.4 12.2 13.8 5.2 11.3 13.5 11.1 8.8 10.0 12.3 10.4 7.2 9.6 10.6 11.4 5,8 10,0 11.9 9.6 6.6 8.6 9.8 9.4 6.4 8.4 9.4 Aver- ' age terra, months. 9.S 8.8 8.0 5.3 7.3 7.6 8.7 7.9 8.0 8.5 8.4 8.5 8.6 9.1 8.5 9.0 8.0 8.7 7.8 7.2 6.7 8.7 7.8 9.0 7.1 8.4 8.6 8.1 8.1 9.2 9.2 9.8 9.1 10.0 6.4 7.4 7.8 6.9 7.4 7.8 6.9 8.8 8.3 8.2 8.S 7.7 1 Where the reports show a commission paid once for all in advance on a loan running more tlian a year/ the etiuivalent annual commission is used . * Including commissions and all extra charges. 8 Less than one-tenth oil per cent. ' " " ' o