The morning call., 1891-12-29

Ing him any larger loan. The savings bank law
allows hem 10 lend co per cent OF the market
value OF city property but the market value is a
most INDEFINITE quantity; therefore the banks
take no ones value but their. own. They lend
is safe.
RATES OF INTEREST.
The city rate of interest during all OF 1891 was
q per cent. the banks paying the mortgage tax
luis rare made The net rare paid by borrowers
about 51s per cent per annum A few loans
were made by savings banks IN early summer at
6bs TO 6s4 per cent they paying the tax; but
,he,e exceptions were so few nat they did not al.
yer the general rate. As the year S92 opens 1t
Goes not seem probable that there will be any
change IN the rate OF interest, either OF ad-
'""'e vi uecilhe Tor at least six months TO come
LOANS IN 1890 AND 1891.
During the eleven months and twentv.seven
4ays OF 1881. up TO and inclusive or December
= IN, private individuals took 2I67 mortgages OF
of The value of S5,746, Gle. Tie Hibernia Rank
loaned S4.954 500 on city real estate In 1880
ana an bnt 50 SOL 1856 In 1891. This bank bought
sI,o4O,OoO worth OF Washington City bonds last
year. This purchase accounts for the reduction
OF IT'S loans on city real estate.
Inc German Savings Bank lent 50 ,oSO.979 on
The Savings Union lent 81, 42S,321 in $50 ard
Sl,691,7S7 In 1891. The Savings and Loan So
S54l, $50 in 1891. The Humboldt Bank lent
500 '455 III the city in 1890 and s722. $50 in
1881. The Security Bank lent S269.550 on city
real estate In 1890 and S253, 700 in 1891. The
french Bank lent S270,65O in 1890 and S544,-
800 IN 1891.
COUNTRY LOANS IN 1891.
Never In the history OF our savings banks was
interest so pl omptly anu fully paid up by eouu-
Try borrowers as in 1891. We suppose it is
1alr TO Judge from this that the year was on the
whole prosperous one for farmers. II should
De understood. however, that the most OF cOun-
Try loans held by our savings banks are on
Mheat, ailalfa and grazing rather than on fruit
iahds. when loans are occasionally granted on
tne latter no allowance is made for trees or
vines even when In full bearing. What the land
Is worth for ordinary agricultural use IS what
estimates OF IT'S value are based upon.
LOANS FROM THE CITY.
But Tor loans granted by our city savings banks
on country lands the rates of Interest in the iu-
terror on such loans would be 10 2 per cent per
year higher than they are. Country banks used TO
charge from 10 to II per cent for loans on land
appfOXlmailng them would still be charged but
LOT city SAYINGS banks competition The Savings
Union and the German Bank have nearly ten
mhlons OF dollars each let out on country lands,
by which they save 100000 year TO farming
debtors. The California Savings and Loan So
cieiy has nearly all OF its deposits loaned In the
country, ana the other savings banks In the ag-
country
The rates on country loans average per cent,
Tue banks paying the mortgage tax. Country
borrowers therefore pay per cent year only
more man city borrowers. We wish loans TO
tDem could De granted at the same rates In
tie city. but thiS IL Is claimed, is impossible Ii
Should be remembered, too, that city borrowers
country borrowers only pay their interest yearly
aud not III advance 1t is very much more ex-
penSlVe and troublesome to deal with county
than with city borrowers.