Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-12-24
u. S. LENDS FARMERS
OVER FIVE BILLION

WASHINGTON.-The banks of
the United States had out
standing approximately $3,S69, $751;
AS in personal and collateral loans
to farmers, and $1,447, 4S2,926 in
farm mortgage loans on December
81, 1920, according to statement
made public today by the United
States department Of agriculture.
These figures are in the nature of
reports from 1880 banks out Of a
total of 30,178 banks as given by
the comptroller Of the currency.
For the United States as a whole,
76 per cent Of the banks reporting
had some farm business. In the
west south central states, the CORE
spending figure was SO per cent, and
the lowest reported in any geograph
ic division was 45 per cent for the
New England states. By states, the
five highest percentages were as fol-
lows: Arkansas, 95 per cent; Okla
homa and Montana, 80 per cent
each, and Kansas and North Dakota,
81 per cent each. Wv,
The personal and collateral loaps
to farmers comprised 1929 per cent
and the farm mortgage loans 4.97
per cent of the total loans and dis
counts of all the banks as reported
by the comptroller. A combination
Of the percentages for the estimated
totals of the two classes Of loans in
dictate that total bank accommoda-
loans to farmers constitute Is per
cent of the total loans and discounts
of all banks in South Dakota, II
per cent in North Dakota, 50 per
cent in Kansas, and sc per cent in
Iowa.
High, low, and prevailing rates of
interest on four types of farm loans
were reported by the banks, namely,
personal and collateral loans of $500
or more, petty short-tirne loans, first
mortgage loans, and second-mort-
gage loans. According to these re-
ports, most of which were received
during March and April of the cur
rent year, the average rates for the
United States as whole were as
follows: Personal and collateral
loans, prevailing rate 1896 per cent,
high, 8.23 per cent; low, 1859 per cent;
petty short-time loans, prevailing
rate, 8.21 per cent; high, 8.4S per
cent; low, 7.91 per cent; first-mort-
gage loans, prevailing rate, 1923 per
cent; high, 7.57 per cent; low, 6.73
per cent; second-mortgage loans, pre-
vailing rate, $40 per cent; high, S.37
per cent; low, ITO per cent.
For each of the four types of
loans to farmers, the rates reported
from the Middle Atlantic states were
lower than those for any other sec
ton of the country, the averages OF
the prevailing rates reported from
this group Of states being as fol-
lows: Personal loans of $500 or
more, COL per cent; petty short-time
loans, 6 per cent; first-mortgage
loans, 5.96 per cent; second-mort-
gage loans, 6 per cent. The highest
prevailing rates in the case of both
types of personal loans were report
ed from the West South Central
states, the averages for this section
being 9.66 per cent on personal loans
of 500 or more, and 1914 per cent
on petty short-time loans. For mort
gage loans, however, the highest
rates were reported from the So
called Mountain states of the west,
the averages for this section being
9.07 per cent for first-mortgage
loans, and 9.57 per cent for second
mortgage loans.
An effort was also made to OBJ
tain figures on commission and 9TH
err charges on mortgage loans. Such
data as were obtained indicate that
when commission and other charges
are made they amount to from one
half of 1 per cent to per cent of
the amount of the loan, or on an
annual basis Of from two-tenths of
l per cent to l per cent per year.
OF the farm mortgage loans held
by banks, about rs per cent, or a
total Of approximately $108,000,000,
were based on second mortgages,
the remainder Of such loans being
based on first-mortgage security.
Secoud-mortgage loans were report
ed in largest amounts by banks of
the West North Central states, such
loans being particularly common in
the states of Minnesota and Iowa.