The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1915-12-09
WAYSANDMEANS
TO ADVANCE THE
ECONOMIC PROCESS

! In the United States; while the bal
ance of $2S,971, 200 or la per cent
were invested In real estate securi-
iea 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. it 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
hinety-seven per cent OF all such
loans made by American life in
surance companies. Their figures
are OF interest as showing a pre-
ference for farm loans in sections OF
the country where farming has ac-
hieved It's highest development. and
supplies of local capital are compara-
lively limited. Out of the total Of
about $646.0O0.O0O OF farm loans,
only 100000 are In the New Eng
land states. and $S27, 900 in the
middle Atlantic states, while there
ore $2S4,O00,OO0 in the northwestern
group; s1S7.000.00O in the south
western: $4,000, 900 in the Central
Northern; s20.000,OOO in the Gulf
and Mississippi valley: $4,000. 600
In the South Atlantic. and S16,0O0,-
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
n showing as this, 1t is no wonder
we ind 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 20,
1914, according to the report OF the
comptroller OF currency, but S542,.
100000 OF farm mortgages-slO0..
100000 less than was held by life
insurance companies ut 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 look
Tor its cause outside Of the rates
which life insurance companies arc
receiving upon their farm mortgage
investments. because we find the
u average rate on all our farm loan.
to be but 5.55 per cent. This is in.
deed surprising when we learn tina,
farm loans average, with companic.
chiefly engaged in making such loan,
but $4,000 each. while the city ant
village loans Of companies chief,
engaged in making such loans, aver
age $4,000 each, and yield al
average interest return of 5.1s pei
cent.
/ Rule in Lending.
Lenders Of money are beginnin,
/ to realize that they should give CON
s!deration to how capital supplied b,
them Is going to be used, whether Il
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 vii
soon eome-n It has not already ar