REPORT OF THE STATISTICIAN. 421 



the State. Everything possessed by the farmer is in sight for enumeration, and there 

 is less evasion of taxation by the farmers than by any other class of citizens. The 

 farmer, therefore, pays his full proportion of taxation and also a great portion that 

 Bhould be paid by speculators in stocks and mortgages and other personal and valua- 

 ble effects, much of which is never returned for taxation. More equal taxation 

 would enable the farmer to apply his excess, now paid, to a reduction of his indebt- 

 edness, and a few years, at most, would see him free and independent (jf debt. 



The extent of farmers' property interests outside of farms is very limited. A few 

 Ohio farmers liave investments in Western lands and some in city property, but the 

 surplus money of wealthy farmers rests, in many instances, in Governmc. u and other 

 good securities. There are, however, but few such farmers; most of them have only 

 surplus sufficient to keep farm matters moving along. 



MICHIGAN. 



The investigation as to indebtedness of Michigan farmers shows 

 that it is neither very general nor heavy, yet probably a third of them 

 are somewhat involved in debt, a few seriously. It is estimated that 

 one-fourth of the farms are mortgaged for varying amounts, gener- 

 ally from one-fourth to one-half their value. It is an indebtedness 

 largely due to other farmers, and in less degree to merchants and 

 bankers. The average rate of interest may perhaps be placed at 7 per 

 cent., though in some cases 6 suffices, while in the northern coun- 

 ties 8 or 10 is paid by many debtors. There are many farmers in 

 the southern' part of the State who possess surplus capital in the 

 form of notes, mortgages, bank and railroad stocks, and interests in 

 manufactures. 



INDIANA. 



Indebtedness of farmers is decreasing in Indiana, and it is estimated 

 that 10 per cent, are in debt beyond the amount of their credits. 

 Mortgages are divided in the following proportion, as estimated: To 

 Eastern capitalists, 35 per cent.; to banks and manufacturers for 

 machinery, 25; to secure payment of purchase money on land, 18; to 

 school funds and local loaners of money, 22 per cent. It is estimated 

 that farmers have property interests to the extent of one-fifth the 

 value of farm property. The condition of Indiana farmers is there- 

 fore by no means serious. The State agent reports : 



The demand for loans is less now than at anytime for a period of seven years; but 

 the amount of mortgages on record shows but slight diminution. The average in- 

 debtedness, or the amounts for which mortgages are given by farmers, will average 

 nearly $1,000. Although apparently there is less demand for large loans, and seem- 

 ingly a better condition of money matters among farmers, yet there remains the fact 

 that many of the farmers are victims of various swindling schemes, that have been 

 so successfully worked m portions of this State (Bohemian oats, red-line wheat, &c.), 

 and this class of indebtedness is much greater than the public are aware of. Yet 

 another cause of distress among farmers is the inducement held out to them by agents 

 of farm machinery of long time. Many are induced to buy, and are compelled to 

 mortgage the farm to meet the notes when due. This cause has operated to produce 

 30 per cent, of all the mortgages on record against farms, but not over 25 per cent. 

 of the amounts. _ I should tliink that 20 per cent, of the local capital is the property 

 of farmers. This includes what may be invested in town property or local securi- 

 ties, manufactures, and gravel-road bonds. 



ILLINOIS. 



The proportion of unimproved land is less in Illinois than in any 

 other State. Farms are gradually decreasing in size and increasing 

 in number. In the establishment of new farms by young men and 

 others without capital there are many that are encumbered by mort- 



