28 ANNUAL REPORTS OF DEPARTMENT OF AGRICULTURE. 



SOURCES OF CREDIT. 



A short analysis of the sources of agricuHural credit was attempted 

 and with considerable success. There are often various sources of 

 credit in the same community, and it was hoped that the correspond- 

 ents would be able to determine the relative importance of each. 



It appears that of the principal sources of agricultural loans and 

 advancements (not including purchase money) local banks supply 

 67 per cent of the total agricultural credit in communities where 

 banks exist; neighbors supply IG per cent in communities where they 

 contribute anything to the supply of credit: individual lenders in 

 near-b}' cities and towns supply 12 per cent in communities in which 

 any supply of credit is derived from them; loan agents for outside 

 capital supply 16 per cent in communities where such loan agencies 

 exist ; local general stores supply 25 per cent in communities where 

 they contribute anything to the supply of credit; and unclassified 

 sources of credit supply 13 per cent in the communities where these 

 unmentioned sources of supply exist. 



Local banks supplj^ more than half of the agricultural credit, gen- 

 eral stores supply one-quarter, and both supply more than three- 

 quarters. The supply from neighbors is about one-seventh. The 

 credit that is supplied from a distance, or what may be regarded as 

 the supplji^ from outside sources, is about one-seventh of the total 

 supplied ; and consequently it appears tiiat about six-sevenths of the 

 supply is derived from strictly local and near-by sources. 



These conclusions a])ply to the communities in which these sources 

 of credit are found. They are not found in all communities. It was 

 reported by correspondents that in 1 per cent of the communities 

 there was no supply of credit by banks; in 11 per cent of the com- 

 munities no supply by neighbors; in 39 per cent of the communities 

 no supply by individual lenders in near-by cities and towns; in 51 

 per cent of the communities no supply by loan agents for outside 

 capital ; in 47 per cent of the communities no supply by local general 

 stores; and in 93 per cent of the communities no suppl}' from other 

 sources. 



RANGE OF AMOUNTS OF LOANS. 



An effort was made to ascertain the range of the bulk of the indi- 

 vidual amounts of loans and advances made to farmers owning their 

 land, but not including purchase money. In the opinion of the cor- 

 respondents, the range is, on the average of answers, from $274 to 

 $1,767; and a similar question concerning tenants indicates a range 

 of $107 to $473. 



STORE CREDIT. 



There is one source of credit in rural regions in this country that 

 is very prevalent, and yet it is rarely mentioned in discussions of 



