Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1915-03-05
LOCAL BANKS APPEAR AS LEND
ERs in COMPARATIVELY FEW,
MARCH / DEALS. u
REASON rs TIGHT MONEY
MARKET FEW MONTHS AGO
Most Of Il. Mortgage. Being Filed
Now Were Nsaosiated i..i ,F.;:.
Early in the Winter, When Banks
Were Not in tbs Market For New
Loans Of Any Kind.

The condition Of the local money
market during the months OF last fall
and the early winter Is reflected IN
the negotiations for the sale and mort
gaging of farms and other real estate
that are now being closed. The rec
ords disclose, and local bankers verify
what the books show, that the city
banks took but very few farms or real
estate loans for March 1.
The records of the recorders office
show that for the five week. days end
ing with Thursday night, local banks
had loaned only $4,000 on farms in
the county and only $19,3SO on all
kinds OF real estate. The $4,000 COW
cred two mortgages, and the $19,3SO was
the gross amount on seven mortgages,
five Of which were on property in this
city or towns of the county.
Percentage Very Small.
The percentage of the real estate
loans taken by the banks OF this city
is surprisingly small-a little more
than Is per cent, or one in SIX. For
forty-two real estate mortgages 1llea
up to last night, the local banks took
only seven.
When traced back the explanation Is
quite logical from the bankers stand
point 1t is that the disturbed condl-
ton of the money market, prior to Jan.
l, put the banks practically out OF the
market for farm loans, or mitch OF any
other loans for that matter. during
the fall and early winter months the
banks were taking care OF their reg
ular customers, renewing such prime
loans as fell due. but, making COM
paratively few new loans.
Farm Loans Neaoti ated Ahead.
Real estate, and especially farm
mortgages, that are being filed now
We're negotiated some time ago, as
rule But during the fall and the hrst
months of the winter. the banks were
not in the market for new business
even such good business as farm mort
cages are generally. regarded to be.
Bankers explain that the money
market was so uncertain there was no
assurance what it would be by Marcn
l.: that they could not take the risk
Of promising loans months in advance.
The result of this was that many farm
sales were not closed because the
money was,not4procurable at that time.
PracticaHyN alh.the real estate mot
cages made by banks have been made
since Jan. lin fact most Of them
were negotiated since Feb. l. or since
the money market grew easier.
Sellers Taking Mortgages.
In rather a larger percentage OF
cases than usual, bankers say, where
farm mortgag were negotiated, the
seller has been willing to take back
o. mortgage for part payment. He has
been willing, usually, to take the mort
gage at a lower rate of interest than
the banks would accept, until within
o. comparatively short time. So that
a very large part of the loans have
been made by the sellers, by non
resident money owners, particularly
eastern moneyed men, many OF whom
regard an Iowa farm mortgage as the
very salt Of the earth, speaking in
substantial and safe sense, and the
big insurance companies.
The big insurance companies which
have been quite ready In other years
to loan thru local banks on farm mort
cages at from to 51A per cent have
not been in the market at all for this
class of loans until quite recently. The
usual rate they have been getting ex-
cept for exceptionally choice loans has
been per cent.
transactions to Be Fewer.
Because of the conditions Of the
money market in the fall and winter,
that caused the banks cautiously to
hold off and make few promises OF
March 1 loans, the bankers are quite
generally agreed that the transactions
Of this kind this spring will be fewer
than usual.
But, Of course, not nearly all of the
farm sales that have been negotiated
have been closed. Among those mort
cages that are yet filed it is quite
possible that the local banks will APP
pear more frequently. as the lender
than heretofore, for practically all the