The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1915-07-05
40 MILLIONS
IN FARM LOANS
OVER STATE
EAST ES GLAD 10 GET 6 PER
CENT ON OKLAHOMA
MORTGAGES


y Oklahoma City. Okla, July s.
Forty million dollars in commercial
farm loans in force in Oklahoma al
the low rate of per cent interest, and
eastern money anxious to ber it al
thai, enows that the Oklahoma farmer
who needs a loan and has the proper
security TO glye can get what he
wants by simply making his wants
known This condition, at first glance
by those who do not stop TO think,
Mould seem a reflection on the state.
1t is not, and there are many reasons
to the contrary
Lending money on farms, or to the
farmer, ~ Il perfectly legitimate busi-
ness, and In the case of Oklahoma 1t
shows that the farmers are making
Improvements on their places, which
adds increased value to their homes
and at the same time to the wealth
Of the state Borrowing money by the
tenant or itinerant farmer, is quite
another thing. He scarcely has any
security to offer, consequently it is the
most natural thing in the world that
lac can not borrow.
Farming Successful.
The $40, 900, 900. loaned on Oklahoma
farms represent thousands of farmers
who have apparently become success
full to a more or less extent, else they
would not be able to borrow money on
their places. This money coming from
eastern money lenders. secured at the
low rate of per cent signifies that
II is the least Of the Oklahoma far
mer's troubles to borrow money if he
possesses the proper collateral. This
is true, There are many sources of
wealth anxious to loan money on Ok
lahoma farms There is reason.
Diversification of crops in the last
few years has probably been the main
thing to cause eastern money lenders
to look with favor on Oklahoma. Ok
lahona raises more cotton than some
southern states, and yet at the same
time raises more wheat than some of
the northern states. In the different
forage crops this is also true. North
ern states do not raise cotton, neither
do southern states raise wheat. Here
is an advantage that make risks easy
in Oklahoma A
School Money Not included.
Conditions of no small interest sur
round the fact that there is $40,000,-
600 loaned on farms in the state.
These are private loans, it may be
said, and have nothing to do with the
school land department which loans
on farms in the name of the state. 1t
requires between seventy-five and one
hundred trained and expert clerks,
bookkeepers, stenographers and field
men to handle the loans made by
eastern companies. And of this large
sum more than three-fourths Of it is
handled through Oklahoma City, by
the dozen or more agencies located in
the city. This money is all sent to
the Oklahoma agencies and handled
through the local banks, When inter
est is paid, or the notes settled, the
money comes back through the Okla
homa City banks on its journey back
to the owners. With the exception of
one small agency, there are no farm
loans in Oklahoma handled through
Texas company, and none by an
Arkansas agency. 1t comes direct to
Oklahoma City from the source of
supply.
Clean Titles Possible.
Favorable laws and the fact that
clean titles can be given in Oklahoma
has made the business favorable to
eastern investors. Most of this money
is furnished by the big insurance com :
panies of the east, while trust COM
panies supply their share. Seldom is
a loan made directly to an individual.
The big farm loan companies of the
state have representatives in every
usually bank which buys the
loan and the banker or personal rep
of the loan company at
ends TO the details.
Other conditions make Oklahoma
arm loans desirable to eastern invest
RS. Kansas, Texas and Arkansas
ands were in course of development
ong before Oklahoma was opened to
yet the rate of interest on
pans in Oklahoma. including commits /
ions. which are from one to three per ,
ent is as low in Oklahoma as it is in
.ansas. and lower than in Arkansas. ;
here is not one-tenth as much money
'aned on farms in Arkansas as in q
klahoma. and though Texas is a :
uch larger state, there are no more T
ans carried there than in Oklahoma. j
iversification of crops is given as