Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-03-16
THAT sum BORROWED ON NEW
"a MORTGAGES TO FINANCE
z MARCH 1 DEALS.
BANKS ALL HAo j"oooo
Z. PICKING" THIS YEAR
Money Was Abundant, Demand Was
Good, and They Could Pick Their
Loans-Lifs Insurance and Trust
Companies Back in the Market
Again.

Nearly three quarters Of a million Of
dollars was borrowed on farms and
other real estate Of a value Of $780,
$50 that were sold during the March
period, which ended Monday. On this
real estate were placed mortgages that
totaled s712,200, but this sum repre-
sents only the new mortgages, and
loans. A large amount, not included In
the above sum, is represented by old
mortgages that were on the land and
that were assumed by the purchasers.
Probably mortgages for a total OF
5000, 900 were assumed. Such being the
case the balance in cash paid on these
! transactions would have been 1878, 46s,
or something less than one-half Of the
total value Of the property. g. -.
| Banks Appear as Lenders.
Among the interesting details Of
these transactions, which indicate
market, is the comparatively liberal
banks participated in furnishing
money for these loans OF all the
money that was loaned the banks Of
the county furnished $57,150, which
does not include any extensions or re-
newals of mortgages they may have
already held. 49,
The total represents a large sum
compared with $19.330. which was the
amount the county and city banks
loaned on real estate mortgages March
! /, 1915. The uncertainties that the
war had produced late in the summer
and fall of 1914, when the farm deals
are mostly made, had caused the
banks to withdraw almost entirely
from this loaning market.
Banks Picked and Chose.
! This left the banks in the position
| that they would only handle few ex-
ceptionally choice loans that had been
promised for March /, 1915, for various
reasons. The result was that all the
banks Of the county loaned only
$1s, 700 on March I farm sales. The
rest Of the $1s,3so was loaned on city
property.
Conditions had 50 adjusted tham-
selves by late last year when another
crop of farm sales was being nego-
tiated that there was an abundance Of
money and tremendous demand for
it. But the SUPPLY Of money increased
and by March / all the bands had paid
of loans made from their city cor
respondents to furnish cash for the fall
business. -iZ
The money situation with the banks
during the recent farm turn over
period has been so favorable that, AZ
matter Of fact. they have refused a
good many loans because they could
not get q profitable rate for their
money. This enabled the bankers to
pick and choose their loans. They
took only the best. - .
Banks Rate. at 8 Per Cent. =.
There was so much money" said
one bank president in explaining the.
rather unusual situation, ''that We had
great deal and at such times bank
ers are likely not to become cautious
enough in making their loans. Also
it was q question Of getting rate
that was profitable
The loans on farms made this spring
by the banks fix per cent as the go
ing rate for these loans, except where
they were for periods shorter than ihve
years, or were on a second mortgage.
! CITY ana town property was taxed
usually per cent in this city, but
some town loans in the county were
made at as high as 8 per cent. ~
Dug IOBuBduOO SOSUPNtu0o
Those who had occasion to inquire
in the late summer, fall and winter Of
1914-'15 found that the big life In
surance companies. which regard Iowa
farm mortgages as probably the best
of their loans, had withdrawn from
the market altogether. These COM
panies did not get back until about
March 1, 1915.
This year the insurance and trust
companies loaned as much money on
local farm mortgages as did the local
banks. The rate has been from s to 6
per cent for five years frst mortgages
for less than so per cent Of the value
of the farm. In cases Of second
mortgages or. where the mortga8ors'
equity was smaller. the rate advanced
to in some cases as high as per cent.
r. Owners Largest loansrs. ~
The owners of the farms who sold
them. have, Of course. been the largest
loaners, taking as they did q part of
their pay in the shape of frst mort
gage on the land sold. The large
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