St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-02-23
PRIVATE INDEBTEDNESS.
Census Supt. Porter Takes a
WhirI at 1t.

WASHINGTON, Feb. 22.-Superin-
tendent Porter, of the census bureau,
has just prepared an introduction to the
bulletin on private Indebtedness of in
dividuals and corporations in the
United States. In it Mr.. Porter says:
The agents of the census office have
overhauled the records in every state
and territory and we now have on file
in Washington, as a result of their
labor, the abstracts of about 100000
mortgages. According to this report,
the total real estate mortgage in debt in
force Jan. l, 1890, in Alabama
was S39, ,027,9 ,9S3; the total real estate
mortgage debt in Iowa in force
Jan. l, 1890, was $199, ,034.957. The aver
aye amount of debt to one of population
in Alabama was $26. in Iowa $104. In
1889 the number of acres mOrtgaged in
Alabama was IA ,420; total number OF
acres in the state, 81, 9S5, 600; per cent of
acres mortgaged, 5.3. Number of acres
mortgaged in Iowa, 8, ,240, ,432; total num-
ber of acres in the state, 80, 504, 600; per
cent of acres m0rtgaged. 81. The inter-
est charges In Alabama range from l to
40 per cent. and in Iowa from to 20
per cent. Throughout the South and
West the contracts often state that the
debt is without interest or give lower
than the true rate. The average OF
mortgages, with an allowance for par
tial payments, is computed to be 2.73
years in Alabama and 4.93 years in
Iowa.
By personal inquiry in Alabama as to
the objects in mortgaging real estate,
the most prominent ones given are:
Purchase money, to buy other land,
business, improvements, farm expenses
family expenses, family supplies. farm
supplies, to repay borrowed money, and
litigation and lawyers fees.
In Iowa: Purchase money, improve
ments, to buy other land, business, farm
stock, security debts, speculation, liti-
cation, living expenses and undeScribed
ueuts. Tne counties thus selected and
known in the census Office as inquiry"
counties were jefferson and Greene
counties, Alabama. and CasS, Crawford.
Delaware and johnson counties, Iowa.
In jefferson county, Alabama, 1t was
found by actual inquiry that the motive
for 95S 81 per cent of the Indebtedness
was the purchase OF incumbered and
other real estate, improvements and
business; in Greene county. Alabama,
for these purposes, 6S.3l per cent; in
Cass county, iowa. Glib per cent: i'll
Crawford county, Iowa. 90333 per cent;
in Delaware county, Iowa, $3.50 per
cent; and in johnson county, Iowa,
93.47 per cent.
In an extract from the report of Mr..
Wright, chairman of the committee on
statistics of the American Economic as
sociation, he gave it as his opinion that
the result of this inquiry will not
vary more than 5 or 10 per cent from
actual truth" | believe the variation
will not reach per cent. and it GER
tainly will not exceed 10 per cent.
LII computing the amount of existing
Indebtedness in two selected or IN
curry" counties III Alabama. the total
actual debt on Jan. l, 1890, was S14,952,-
O2O. the total computed debt $500, ,230.
and the percentage of error in excess
was 2.99. In the four selected counties
of Iowa the total actual debt at the
same date was SS,453, III. the total COM
puted debt $S,473, 105, and the percent
age of error in excess of debt was "a. .
This would indicate that the plan
adopted will exceed both valuable and
accurate statistical results, and this sup
position is fortified when it is borne in
mind that able statisticlans admit that
even if the error should vary from 15 to
30 per cent the results would still be of
incalculable value.