The Chickasha daily express. (Chickasha, Indian Territory [Okla.]) 1899-current, 1916-06-27
State Farm Loans for Week Ending June
II Reach Total Of $lO7,lOO
Goes Directly to Borrowers
at Five Per Cent
EFFECT ON INTEREST
CHARGES IS MARKED
Secretary Smith Predicts Private Compan'
les Will be Forced 10 Meet Con-
peiiiiOn---AmOunt Now Avail
able for Loans 81 100000

Oklahoma City. Okla, June 27.--s
Making farm loans, for the week end
ing June nth all previous records
were broken by the allowance Of sl07,.
100 loans by the commissioners OF
the office. The average loans had
ranged from $4,000 to $4,000 per
week for several weeks past and this
money goes directly to the borrowers
on five years time at 5 per cent In
terest and Is having a tremendous ef-
feet on the rates being charged In tke
state and already many loan compa.
nies have revised their rates to meet
state competition by reducing them
from 10 per cent to per cent In some
parts of the state and in other parts
reductions have been made from per
cent to and 6Hs per cent.
Secretary G. A. Smith OF the school
land department has repeatedly said
that 1t would only be q matter OF time
until all loan companies OF ue state
would be compelled to meet the state
rates and that interest rates on farm
lands will ultimately come to 5 per
cent or per cent basis.
The present taxable farm land valu-
alton Of the state Of Oklahoma ia
s461 ,s9s,325. according to official fig
ures in the state auditors office. 4
conservative estimate based on the ex-
perience OF many Of the most promi
nent farm loan men OF the state Is that
IS per cent Of the taxable lands Of the
state are under mortgage. This would
signify that the value Of the lands
nnder mortgage is s254ro4l 1928. The
same men estimate that the amount
Of mortgages upon mortgaged lands
averages about 81 per cent This
would mean that the total mortgaged
indebtedness OF Oklahoma is sss,sl4,-
AGA. The state OF Oklahoma has now
In loans or available for loans nearly
7,OOO0 900. This WIN be augmented at
the rate or more than onA-haIf million
dollars per year from the common
school funds. and from 100000 to
100000 each year from the college
funds. Both OF these funds win ulti-
mately amount to about $35,000.000
or $4,000. 900. State competition has
already resulted In lowering rates in
the state as much as per cent which
means a saving to the borrowers OF the
state in interest rates OF $1,706O.000
each year, and when state competition
brings ali companies to state rates the
saving win be at least double this
amount.
The commissioners Of the land Of
flee are endeavoring to 50 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-
tivated their farms all other persons
we're denied loans. but the rapidly ac-
cumulatiug funds went clear beyond
the demand OF this class Of borrowers,
hence the rules. were liberalized so
that loans could be made to any one
who had the security and title provid-
ed the same was not 10 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
to 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 viii result in
the saving Of millions Of dollars each
year and enable the borrowers TO pay
off loans already made and win also
enable thousands Of people 10 borrow
money and pay for a home which ac-
fcontinued on Page Thresl