The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1915-12-09

TO ADVANCE THE
ECONOMIC PROCESS

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In the United States: while the bal
ance Of $2S,971.000 or 1913 per cent
were invested in real estate securi-
tiea Of other countries, chiefly in
Canada. As the value of farm lands
and improvements, according to es-
Inmates of the United States census
bureau, is only little over thirty
per cent Of the total value of all real
Property in this country, 1t appears
that life insurance companies have
shown a marked preference for farm
loans as compared with city and vii
lage loans.
One hundred and twenty-six OF
the companies reported to the asso-
citation their farm mortgages by the
states. These companies hold about
ninety-seven per cent OF all such
loans made by American life in
surance companies. Their figures
are of interest as showing pre-
ference for farm loans In sections of
the country where farming has ac-
hieved its highest development, and
supplies OF local capital are compara-
lively limited. Out OF the total OF
about $646,O00,O0O of farm loans,
only S104.000 are in the New Eng
land states, and $4,000 in the
middle Atlantic states, while there
are S2S4.000,000 in the northwestern
group: S1S7,O00,000 in the south
western; S117,000,O00 in the Central
Northern; $20,000,O00 in the Gulf
and Mississippi valley; $4,000, 900
In the South Atlantic. and $4,000
600 In the Pacific group of states.
Much in Corn Belt.
An enormous amount OF money
has been loaned in what is gener-
ally termed the great corn belt.
where farm values average the high
est. In the northwestern group, the
farm mortgages held by life insur-
ance companies at the end of 1914
amounted to sixty-four per cent of
! the total farm loans reported for
these states by the United States
census bureau In 1910; in the south
western group they amounted to fifty
nine per cent; in the central northern
to twenty-five per cent. With such
showing as this, 1t is no wonder
we find that life insurance companies
as class are today the largest hold
ers OF farm mortgages in the United
States. Even the banks of the coun.
try. including both commercial and
savings banks, held on June 40
1914. according to the report of the
comptroller OF currency, but s542,.
100000 OF farm mortgages-s10o..
100000 less than was held by life
insurance companies at the same
time.
We are hearing much today OF
the rural credit problem and are be.
ing told that farmers in some sec.
tons of the country are often com.
PEELED to pay exorbitant interest
rates. II this be true, we must lool,
Tor Its cause outside OF the rate.
which life insurance companies arc
receiving upon their farm mortgap,
Investments. because we find thu
average rate on all our farm loans
to be but SIS per cent. This is In.
deed surprising when we learn tina
farm loans average, with companie,
chiefly engaged in making such loan,
but $500 each. while the CITY ant
village loans of companies chief,
engaged in making such loans. aver
age $4,000 each. and yield a,
average interest return of STA ne,
cent.
1 Rule in Lending.
Lenders OF money are beeinnin,
to realize that they should give CON
sideration to how capital supplied b,
them Is going to be used, whether 1,
provide luxuries and encourage ex
travagance, or to improve values ant
increase. income from the propertie
taken as security. The rule apple
alike to city, village and farm prop
critics, and I believe the time wfl
soon eome-n It has not already ar