The Miller press. [volume] (Miller, S.D.) 190?-current, 1913-04-03
REPORT ON INTEREST RATES.
Inquiry Into Farm Finances Develops
Facts Of Gneral Interest.

fdCIS OF 1ncTdl intSTCot'
Aberdeen.-H. +. Patterson, super
intendent of the South Dakota Better
Farming association, recently sent out
a list of questions to South Dakota
farmers, relating to farm finance, to
which he has just received some inter
esting data. Question l, as sent out
by Mr.. Patterson, reads: What Is
the current rate of interest paid for
long time loans on good real estate Sc
curity, not including school money!"
The answers give the rate of interest
as ranging from 6 per cent in some Of
the older settled counties OF the state,
up to II per cent in Perkins county,
and some of the newly settled counties
west of the Missouri river, the replies
averaging a rate of 8 per cent on such
loans. Question 2 inquiries into the
rate of interest on short time loans
with collateral security and the rate
runs from 8 to II per cent, with an av-
erage of 10 per cent. Question ;
takes up the matter of the loan agents
commission, and the replies show the
average commission on real es-
tate loans to be ~ per cent per
estate loans to be IL per cen per
annum. Other questions relate to the
average rate of interest on short time
loans, without security, but consid-
cred good, and the returns show the
average rate of interest to be about 10
per cent and the average time such
notes are made out for, about eight
months. The average number of years
for which real estate loans are made
is five years, and the average loan on
a quarter section of land is $4,000, the
average value of the land in the sew
teen counties being $40 an acre. Banks
and loan companies are reported to do
most of the ~loaning or farm property.
The last question asked by Mr.. Pat
terson was: "Tf you could borrow
money at a reasonable rate Of inter
est, what would you do with a?"
Some of the typical answers from diff
ferent counties are as follows: Per-
kins county-"Would pay off debt and
would not borrow any more. Would
buy stock" Moody-"Do not want to
borrow, but would feel safe to invest
in good land" Miner-"Would buy
cattle" Lawrence-"Would pay off
my mortgage" Hughes-"Would in
vest in dairy cows" Harding-"Would
buy cattle" Hand-"Would improve
farm buildings, buy dairy stock and
engage in better farming methods
generally" Gregory-"Would i'm
prove my farm and living conditions
and educate my children to American
standards" Faulk-"Would try dry
farming" Fall River-"Would build
a barn and buy real estate" Edmunds
Aid farmers in better farming
methods and buy dairy stock" Day
Would build better buildings and 9th
erwise improve the farm" DAWSON
Would make some necessary i'm
provements on my farm and buy young
stock" Corson-"Would improve my
herd of dairy cows by getting some
Holsteins." Campbell-"Would stock
up my farm" Butte-"Would make
improvements and buy stock" Brule
would invest in good stock or de-
sirable real estate"
Mr.. Patterson judges from the re-
plies received that most of the farm
ers are in sympathy with the recent
action of northwestern bankers at a
meeting at Minneapolis, to aid fam
ers who desire to make loans to m
prove their live stock.