420 REPORT OF THE COMMISSIONER OF AGRICULTURE. 



Probably 25 per cent, of the farmers are in debt; but not more than 5 per cent, 

 hopelessly so, or to a greater extent than their credits. 



Probably 15 per cent, of farms are mortgaged, 50 per cent, of the debts being to 

 otlier farmers or retired farmers, other heirs or legatees; and the remainder to bank- 

 ers, merchants, insurance companies, and machine and agricultural-implement 

 makers. 



About one-third of the farmers have shares in incorporated companies, bonds of 

 the State and United States Government, and of counties and municipalities, and of 

 railroad and other companies, town lots, Western lands, notes, mortgages, and judg- 

 ments. 



The indebtedness of farmers has been incurred for, first, purchase money, in many 

 instances one heir to an estate taking the farm and paying the others their shares. 

 In other cases a farm passes, at the owner's death, into the hands of a person nc^t re- 

 lated. Sales are also made by farmers desiring to move to some other State by those 

 who wish to change their business, and by the sheriff. Second, for improvements 

 on the farm, such as buildings, draining, and for improved live stock, and for im- 

 proved implements. 



KENTUCKY. 



The farmers of Kentucky are attached to their homesteads, and 

 hold their lands with considerable tenacity. There are fewer small 

 farms than in neighboring States, the average being 129 against 99 in 

 Ohio, and less subdivision and farm-making, consequently fewer be- 

 ginners and borrowers on land security. It is estimated that scarcely 

 more than one-eighth of the farms are mortgaged. The interest rate, 

 however, appears to be high, as the average rate is estimated at 7 per 

 cent. , showing that money for investment is not very plenty. The 

 investments of farmers in other property is not extensive, nor is there 

 much capital obtained from other States for loans to farmers. The 

 State agent says: 



While for the last two or three years the farmers have made but little money, yet 

 taking them throughout the State they may be said to be in a fairly good and healthy 

 condition, and this in the face of the facts that the wheat crop before the last was 

 almost a total failure, the last one, the best for years, ruling as low as from 68 to 70 

 cents per bushel; the tobacco crop not much more than quitting the cost of produc- 

 tion, and the cattle-feeders realizing but small profits. The truth is, nothing in Ken- 

 tucky has paid well but fancy horses and hemp and hogs in two or three years past. 

 Notwithstanding, the farmers are not depressed, and are living on expectation of a 

 brighter future. The chief indebtedness is to capitalists or money-loaners, or loan 

 associations, of necessity. The Kentucky farmers are a frugal set, taken as a whole, 

 and cut their garments according to the cloth. If crops fail, or there is a failure to 

 realize expectations in ijrices, they cut down expenses as far as may be to meet the 

 case. 



I mention a fact that you may solve on any theory you choose. The bankers say 

 they have more unemployed capital on hand at this time than for years before, at 

 the same time of the year. 



OHIO. 



In this State a decrease of indebtedness during the past ten years is 

 reported. It is estimated that one-fourth of the farms are encumbered 

 by mortgages to secure debts to neighboring farmers and bankers, and 

 to insurance companies and Eastern capitalists. The smaller debts 

 are generally due on local loans. The rate of interest is averaged at 

 7 per cent. There are a few farmers who have capital employed in 

 other business. Ohio farmers are generally in good condition, though 

 feeling severely the disax)pointment of low prices of certain staple 

 products. The following statement is an extract from report of the 

 State agent: 



While the indebtedness of Ohio farmers is no doubt very general, it is very evi- 

 dent from the county records that the amovmt of farm indel3tednes3 is less than it 

 was ten years ago, and would be still less if taxation were more nearly equalized in 



