Evening star. [volume] (Washington, D.C.) 1854-1972, 1891-04-22
STATISTICS ABOUT PRIVATE DEBTS.
The Census Investigation in Two States
Completed.

STATISTICS ABOUT PRIVATE DEBTS.
The Census Investigation in Two States
Completed.
The Investigation that is being made by the
census Office to ascertain the private recorded
Indebtedness Of the country, represented by
mortgages on farms and homes, is regarded as
one of the most important ever attempted by
the census Office. The investigation covers
such multitude Of details that 1t will be some
time yet before the results can be made known.
In the case of the states Of Alabama and Iowa
the work has been flushed and today bulle-
tin was issued giving the results as
to those two states. Not only 10 the
| total number Of mortgages and the
money represented by them in the entire
state given, but also for each county in the
state and for each year from 1880 to 1889. A
further division is also carried out through the
tables, which show the number Of mortgages
and their value on acres and on lots. thus ena-
bling one at glance to determine the farm in
debtednessas distinguished from that on city or
bama the total existing real estate mortgage in
debtedness is $50 027 1858. of which F28, 762. 357
or 49, 20 per cent Of the total, ~ on acres and
$40. 265 j96 or 26 80 per cent of the total is on
lots. The per capita indebtedness of the state
is S24.
debtedness of Iowa is S1S9, 034, 1856, 74.7 per
cent OF which, or $148, 8l4 645 is on acres and
25.23 per cent. or $50, 200, 81, on lots.
The chief rate In Alabama is represented to
have been per cent, the recorded debt of the
ten years having borne that rate being GO. 60
per cent Of the total The amount bearing in
terest at per cent was 17.15 per cent Of the
total; the amount bearing interest at Z per cent
was 4.57 per cent OF the total; the amount bear
ing interest at II and 1875 per cent was 6.25 per
onnt nft toto n al la. a Ia
Of S9l, 099,6 23. 1l.49 per cent drew interest
above 10 per cent and 1851 per cent drew In
terest at 10 per cent or less. Above 8 per cent
all interest is usurious and has been so during
ten years previous to January l. 1890. Usu-
rious rates are, or were, actually paid on 1851
per cent of the recorded debt.
Interest at per cent is, Or was, paid on 1890
per cent of the debt of Iowa recorded during
the ten years; interest att7 per cent on 81. 81
per cent of the total; interest at 10 per cent on
1928 per cent Of the total; interest at per
cent on 12.SS per cent of the total; interest
above 10 per cent on 0.02 of per cent of the
total, and interest at 10 per cent and less on
99.9S per cent Of the total. The legal limit to
the rate OF interest is 10 per cent and has been
so for ten years.
CONFINED TO REAL ESTATE MORTGAGES.
Messrs. George X. Holmes and John S. Lord,
the special agents in charge of this investiga-
ton, in some predatory remarks relative to the
scope Of the investigation state that the in
vestigation has been confined to real estate
mortgages because the cost of including other
evidences of private recorded indebtedness
would create an expense too great to be borne
by the appropriation for the entire census
Then, also, it would be difficult to secure
evidence OF this class Of Indebtedness near
enough to the truth TO warrant the attempt.
For these reasons it is stated crop liens. me-
chanlcs liens, judgments by process of law and
chattel mortgages have been excluded. The
word mortgages as used in the bulletin in
cludes all forms Of this character known
variously as deeds Of trust, bond, vendors
liens, DC. The debt owed by corporations has
also been excluded and that upon county fair
grounds, church buildings and the land on
which they stand. The number of special
agents and detailed Office clerks employed in
the field was ZIG for four to five months. They
were mostly lawyers, law students and real
estate agents, the remainder being merchants,
edltors, reporters. physicians, clergymen,
clerks, teachers and farmers and four women
About l.SOO clerks were employed by these
special agents.
THE RATE OF INTEREST.
The fact most difficult to obtain has been the
rate of interest. Throughout the south, west
beyond the Mississippi river and to some ex-
tent elsewhere the records commonly do not
disclose the actual rates of interest borne by
real estate mortgages. and soon after the field
work began 1t was necessary to instruct special
agents to return actual rates, if these were as
certalnable. or, IL not, to return customary
rates. Everywhere mortgages are found that
refer to prOmissory notes or other instruments
for mention of rates. Chiefly in the south and
west the contract often states that the debt is
without interest or mentions lower rate than
the true one, the fact being that the debtor has
not received the full equivalent OF the apparent
principal. These are called STUFFED" mort
cages and, as it is difficult to identity these mort
cages II they mention some rate in the con-
tract, 1t Is probable that many of them have
been taken to the full amount of the inflated
principal. In all cases where they were iden-
titled the principal reduced to tbs true
amount and the rate of interest increased cor
respondingly.
- In some counties in the south farmers give
mortgages to merchants to secure future adj
vances Of supplies, and although these mort
cages state that they free of interest or bear
a low rate, yet as a matter of fact at least the
ordinary rate OF interest il charged in the
prices OF the goods sold. The customary rate
has been adopted in such cases.
The interest mortgage is common between
the Mississippi river and the Rocky mountains
north OF Arkansas and the Indian territory. 1t
generally represents an addition to the annual
rate OF from to per cent. For instance:
When q loan of 81 900 for five years is made a
hrst mortgage is given for 81 900 at per cent
and second mortgage for sl50 without in
terest, representing per cent Of the principal
yearly, and going to the negotiator of the loan.
IL not TO the lender. Special agents were in
structed not to return these second mortgages
as principal, but to convert them into addi-
lions TO the apparent rates OF interest borne
by the first mortgages. The aim has been to
get facts in all cases where the mortgages mis-
represented or concealed them.