The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1916-06-26
FORCING INTEREST RATES DOWN

FORCING INTEREST RATES DOWN
Many people have been surprised
at the wonderful activity shown in the
school land department in the matter
of making farm loans, For the week
ending June II all previous records
were broken by the allowance of $107-
100 loans by the commissioners. In
fact the average had ranged from $50,-
600 TO $4,000 per week for several
weeks past and this money goes di-
! rectlyto the borrowers on five years
h timeht 5 per cent interest and is hay
q ing a tremendous effect on the rates
being charged in the state and already
many loan companies have revised
their rates to meet state competition
by reducing them from 10 per cent to
s per cent in some parts of the state
and in other parts reductions have
been made from per cent to per
cent and 1-2 per cent.
Secretary c. A. Smith of the school
land department has repeatedly said
that it would only be a matter of time
until all loan companies of the state
would be compelled TO meet the state
rates and that interest rates on farm
lands will ultimately come to per
cent or 6 per cent basis
The present taxable farm land val
uation of the state of Oklahoma is
$46l, ,S93,S25, according to official fig
ures in the state auditors office. A
conservative estimate based on the
experience of many of the most prom
inent farm loan men of the state is
that 50 per cent of the taxable lands
of the state are under mortgage. This
would signify that the value of the
lands under mortgage is $254,04l. 1928.
The same men estimate that the
amount of mortgages upon mortgaged
lands averages about 80 per cent This
would mean that the total mortgaged
indebtedness OF Oklahoma Is $SS,914,-
464. The state of Oklahoma has now
in loans or available for loans nearly
s7,0O0,00O. This will be augmented at
the rate of more than one-half mill
ion dollars per year from the com
mon school funds, and from $780,
600 to $4,000 each year from the
college funds. Both of these funds
will ultimately amount to about $685.
O00,0 ,000 or $40 600, 600 State competi-
ton has already resulted in lowering
interest rates in the state as much as
2 per cent, which means a saving to
the borrowers of the state in interest
rates Of S1,76O,OOO each year, and
when state competition brings all
companies to state rates the saving
will be at least double this amount.
The commissioners of the land of
flee are endeavoring to so handle these
funds as to bring about this result in
the shortest space of time. Not only
are those who borrow money of the
state at per cent greatly benefited
but every person who is forced to bor-
row money is also being benefited by
the lower rates being forced by state
competition
As long as there was only sufficient
state money to supply the demands of
those who actually lived upon and cul-
tiyated their farms all other persons
were denied loans, but the rapidly ac-
cumulating funds went clear beyond
the demand of this class of borrowers,
hence the rules were hberalized so
that loans could be made to anyone
who had the security and title pro-
vided the same was not to be used for
speculative purposes and whenever
the funds are reduced TO the extent
that there is only money sufficient for
actual farmers. the rules will be re
considered and the preference given
10 those who actually farm the land.
The development of this country
has been more seriously retarded by
high interest rates than any other
cause and the competition forced by
the school land department will re
suit in the saving of millions of dol
lars each year and enable the borrow
ers to pay off loans already made and
will also enable thousands of people
to borrow money and pay for home
which action would be an impossible
ity under the previous high rates OF
interest charged in this state.
The recent sale of over $4,000, 900