River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1903-07-30
THE FUTURE OF FARM LOANS.
AS a Form of Investment Growing I'm
Popularity Because of Increas-
ing Security.

The trend of the stock markets dur
ing the past six months has not been
favorable to the class of investment
1902. The "undigested securities have
had their effect on the condition of the
market, and there is a growing senti-
ment in favor of some other sort of I'M
dertaking than the floating of mergers
and combines 1t is this situation that
is bringing the farm loan out of the
semi-eclipse into which it was plunged
for time while the stocks were absorb
ing the interest of the investing public.
The element of security is now being
sought, rather than high interest rate,
and the tide of money is turning in the
direction of securities based on substan-
tialities, says Chicago Bonds and Mort
cages.
Among these the farm loan stands
first. There is no one thing so solid as
the soil. While the rain falls and the
sun shines it will produce, and it is al
ways there. The security in these times
of emigration to the west, while values
are increasing and unsettled sections
becoming rarer, is certain to be better,
the income sure to be more unvarying.
Millions of dollars have been loaned
even in the risky parts of Kansas and
Nebraska in the past without the loss
of dollar. Those who loaned in the
boom times in the semi-arid belt, if they
had held on until to-day, would have
recouped their losses to a large degree.
The land was there, and it has increased
marvelously in value. If this be so,
what shall be said of the loans in the
rich northwest, the rapidly developing
Pacific coast, the eagerly sought Okla
homa lands-and indeed throughout the
west where agriculture has it's center
and prosperity is making wonderful
records?
The day of high interest on farm
loans is past. People do not have to
pay eight and ten per cent. for money,
with rich farm land as security. In gen.
eral there are net proceeds for the in
vestor on the average farm loan of five
per cent. But it is secure. It will come
as certainly. if the local agent under
stands his business when he places it,
as the seasons revolve. Indeed, in many
parts of the west so well are the farm
ers making their incomes match their
needs that often the mortgage is lifted
before it is due. Where else is there
more certain basis for such a loan than
the farm on which is a Woodworking
family trying to make for itself home?
The indications are that the farm
loan is growing in favor as the invest
ment in land is increasing in attractive
ness for the investor. The element of
certainty is one that has in these days
become important, and is one that oc-
cupies more of the investors thoughts
than at any time in the past. The sure
ty portion of savings, the positive pos
session of ones belongings-th ap-
peal more strongly to-day than at any
time in the business history of the ma
ton. The farm loan has these elements
in it's favor 1t is one form of invest
ment that with the conditions of to-day
is not likely to deteriorate We predict
that the coming decade will see it yet
more popular, and the fact that so long
as the new lands of the west are to be
developed it will exist and furnish
market for investment adds to it's
strength and makes it more deserving
of confidence.