Imperial Valley press., 1912-10-21
MORTGAGE INDEBTEDNESS
OF UNITED STATES FARMS

IBG UNITED PRESS ASSOCIATIONS
WASHINGTON, Oct. 21.-Statistics
with reference to mortgage indebted
ness of the farms of the United States
are given in a report soon to be issued
by Director Durand Of the bureau OF
the census department of commerce
and labor. The report was prepared
under the supervision of John Lee
Coulter, expert special agent for agri-
culture.
The total number of farms in the
United States operated by their own
ers, which were mortgaged in 1910 is
1,3274S9; while 2,621,2 2SS were reported
as free from mortgage. These figures
show an increase since 1900 of III
per cent in the number of farms mort
ga ged. and A per cent in the num-
Der of farms free from mortgage. The
report will show that 5S,104 farms
were operated by managers, a decrease
of II per cent since 1900 and 1854, 1876
farms were operated by tenants. an in
crease of 16.3 per cent since 1900. No
statistics pertaining to mrotgage in
debtedness were secured for farms op-
Grated by tenants or hired managers.
L would be practically impossible in
many cases to reach owners of such
farms to ascertain the facts.
Land Values Increased
The total value of land and build
ings of the 1.006.511 farms for which
both the fact of mortgage indebted
ness and its amounts were reported
was S6.3S00 0O0, 900 and the amount of
debt was S1,726, 100000. or 27.S per cent
of the value. The corresponding pro-
portion in 1890 as shown in the reports
was S5.5 per cent. There was thus,
during the 20 years a marked diminu-
tion in the relative Importance of
mortgage debt on the farms mort
Gagged. due primarily TO the very rap
id increase in the value of the land in
farms. The average amount Of mort
gage Indebtedness per farm increased
from S1224 in 1890 to SITS in 1910. but
the average value per farm increased
from S3444 to S62S9 and therefore the
owners equity per farm increased from
S222O to S4574 or more than double.
The statistics with reference to the
number of farms mortgaged for the
past three cenSuSeS are not precisely
comparable, although nearly At
the census of 1910 questions as 20
mortgage debt applied to all farms op
Grated by owners. while at the two
preceding censuses they applied only
to the smaller class of owned farm
homes" those farms occupied by the
owners as homes.
Mortgages and Prosperity
In making comparisons between geo
graphic divisions and between censuses
ii should be borne in mind that the
fact of mortgage Indebtedness is not
necessarily an indication of lack Of
prosperity There can be no question
but that American farmers generally
were more prosperous in 1910 than at
the two previous censuses and yet in
that year a larger proportion of the
farms were mortgaged. The proper
tinn Of mortgaged Indebtedness is
higher in fow; and Wisconsin than inI
any other states and yet these states
are among the most prosperous agri-
culture. Although in some cases mort
cages are placed on farms because of
poor crops or other misfortunes or be
cause of mismanagement, they often
represent an unpaid portion of the cost
of the farm itself. or money expended
for additional land. or for buildings
and implements and machinery and
live stock.
In the United States as a whole til
number of farms farm homes ope--
ated or occupied by their owners,
which were free from mortgage in
creased much less rapidly during each
of the last two census decades than
the number mortgaged. The proportion
mortgaged was 2S.2 per cent in 1890,
81 per cent in 1900, and 33.6 per cent
in 1910. In 1910 the proportion of
owned farms mortgaged was high EST
t46.1 per cent? in the west north CEN
trial; the lowest proportion GS.S per
cent, 227 per cent and 20.S per cert