The Wichita daily eagle., 1893-11-22
STARTLING PARTICULARS ABOUT
FARM MORTG AGES.
A Revelation Made by the Omcial Gen.
sus Returns for Thirty-three
States.

From the American Agrculturist
"Nine-tenths OF our farms are mort
gagged for all they are worth. This
statement has been made SO often that
the general impression among all classes
of people is that it represents the facts.
| Nothing could be further from the real
truth. But not until the census OF farms,
homes and mortgages was taken In 1S90
was it possible to get at the truth on this
subject. These returns are now suffi-
ciently compiled to warrant the follow
| ing startling statements:
| Three-quarters of all the farms in the
/ United States are owned free of incnm-
brance. Only one-fourth OF the total
| number of farms in the United States
are mortgaged. Or, to express it more
specifically, out of every hundred Amer
| ican farms, more than seventy are fully
paid for and less than thirty are mort
gagged.
The average mortgage represents only
! one-third the value Of the farm upon
which it is secured.
The total amount of farm mortgages
in the whole country is hardly one
tenth the total value of all our farms.
In 1890. nearly one fifth of the mort
gage Indebtedness rested on farms; but
in 1890, farm mortgages represented
only one-seventh of the country's total
Indebtedness on real estate.
American farms in 1890, Al owned their
farms free of mortgage, 20 owned but
with incumbrapce and 80 hired the
farms they lived on and worked.
OF those who cultivated their own
farms, 20 per cent owned without in
cumbrance and only 80 per cent had
mortgages. OF the farms occupied by
tenants, less than 10 percent were incum-
bered
Four-fifths OF the amount of debt on
farms and homes was incurred for the
commendable purpose of buying and i'm
proving the property, and a like proper
ton of the numbers of farms end homes
were mortgaged for tho same purpose.
The total real es'ate mortgage debt
that existed IN the United States III 1880
is estimated at $3.50, 900, 900, 900. equally
divided between lots and acre tracts. In
1890 the total amount of such incum-
brance had more than doubled, bnt only
81 per cent of it was on acres and 66 per
Cen: or urban property.
The total mortgages, on actual farms
were about $J65, 600, 600 in 1890. and ten
years later was about $S75, ,000, 900, an
increase of $3.50, ,000, 900 in the decade.
During these ten years no less than
900, 900 new farms were created at the
West and South. II only One-half of
them carried the ayerage-size mortgage,
this would readily account for the in
crease in the total debt on farms.
Mortgages on other acre tracts than
farms proper were in 1890 about 1853
millions of dollars, or All increase Of 438
millions during the decade.
The mortgages on lots, that is, on city
and town property. amounted to 1850
millions of dollars at the opening of the
ninth decade, but in 1890 were estima-
ted at nearly 1900 millions, or an in
crease of over 2,700 millions during the
ten years.
The total mortgage indebtedness in
June, 1890, is estimated 70 have been
some 5000 millions of dollars as against
$500 millions i'll 1880, an increase OF
$500 millions.
These figures look large, but show that
the total indebtedness on all real estate
in the United States is only about $92
per capita. Add to this the per capita
amount represented by the public debts
of the United States ($1463, OF states
and territories 1886, and of counties
(S2.27)-a total Of $20.49, and it appears
that the total public debt and all the real
estate mortgages in the United States
amounts to only $112 per capita.
In other words. in June, 1890, the sum
of SIP from each man, woman and
child in the United States would have
paid all the mortgages in the country,
also all the state, national and county
debts. In France, the national debt
alone exceeds SIG per capila; England's
national debt is nearly $50 a head,
while the public debts in the Older Aus
tralian colonies are $500 for each inhab-
liant. There are good reasons for be-
lieving also that mortgages III England,
France, Germany and Australia vastly
exceed the American average of $92 per
capita.
The official figures for thirty-three
states, upon which the foregoing State
ments are based, were prepared for the
American agriculturalist by George K.
Holmes, special agent in charge Of the
division Of farms, homes and mortgages
of the eleventh. census, and are given in
full in the December issue of that maya
zine, in connection with Mr.. Myrick's
article. Another interesting fact is that
the number of families is practically one
to farm in most states, but for twenty
two states, these farm families comprise
30 per cent Of the total number of fami-
lies. In this group of states only one
fourth Of the farms were occupied by
tenants in 1889, whereas now nearly one
third of the families are tenants-again
in the wrong direction. Tne article
concludes with the following statement:
Certain it is that enough has been
set forth herein-most of it for The first
time-to demonstrate that the facts about
farm mortgages have been grossly dis.
torted and exaggerated. The indications
now are that the final figures will show
that over two-thirds Of our four and d
half millions of farms are owned free Of
debt, and that all the mortgages on
actual farms in the whole United States
today do not exceed The value of one
years hay crop.
1.-The whole truth will be known when
the census is completed. but enough is
now done to indicate that the final re-
suit will differ from. the above concIu-
sions in amount, rather than In proper
tion. A revulsion in public sentiment
favorable to agriculture should follow q
widespread discussion Of these facts.
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