REPORT OF THE STATISTICIAN. 423 



distriliuted between banks, merchants, and Eastern loan agents, and to miscellane- 

 ous sources. Our banks mainly loan upon names or indorsers. 



The rates of interest vary widely. Hea\'y loans upon material amounts are se- 

 cured from Eastern capital for from 6 to 7 per cent. The general rate is 8 per cent., 

 but short and less desirable loans are often fcjund at not less than from 9 to 10 per 

 cent. The average rate will be over 8 per cent, and by may is rated as high as 9 

 per cent. Yet good property at ordinary length of time obtains money enough at 

 8 per cent. Our farmers have comparatively small investments outside of their 

 occupation. Our State is young in many sections, and its farms are not yet all 

 settled, and few have their equipments completed. Thus we have not ripened into 

 that maturity where we need such outside investments. In fact, not capital enough 

 is now used for the best results on our farms. But this is more the fault of judg- 

 ment than the dictate of necessity, for we can secure the capital if desired. In 

 short, our people are not in an impoverished condition nor under a heavier burden 

 than they can well carry as a rule. 



KANSAS. 



The flood of immigration pouring over the entire area of this State, 

 stimulated by rapid advance in real-estate values, the consequent 

 demand for money in the purchase of land, erection of farm buildings, 

 fence-building, prairie-breaking, and stocking with animals and im- 

 plements, conduces to the demand for loans that is almost universal, 

 and renders inevitable a large indebtedness. It is a wholesome indi- 

 cation that the process of liquidation from proceeds of labor in this 

 laboratory of nature is progressing, and that the burden will be grad- 

 ually lifted from Kansas farms. The agent says: 



Indebtedness of farmers in Kansas, on the whole, is less in proportion than ten 

 years ago, although it is much larger in the western or newer portion of the State. 

 Eor the whole State it is still much larger than it ought to be. 



Probably 20 per cent, of farmers are in debt beyond the amount of their credits. 

 At least 50 per cent, of the farms are mortgaged, mostly to loan associations hand- 

 ling Eastern capital. Local bankers and capitahsts are largely engaged in making 

 real-estate loans. 



The rates of interest charged on farm loans range from 6 to 10 per cent. On chat- 

 tel loans the rates range from 10 to 18 per cent. Not more than 10 per cent, of farm- 

 ers have property interests outside of their farms. The facilities for making real- 

 estate loans in Kansas are very great. There is scarcely a tOMm of 500 inhabitants 

 that is not supplied with an agency for Eastern capitalists. The rates of interest 

 are lowering each year under the competition. 



NEBRASKA. 



The secretary of the ITebraska board of agriculture makes a very 

 favorable report of the financial condition of the farmers of that 

 State. He estimates that the value of rural indebtedness has been 

 reduced one-half in ten years. The rate of interest is G per cent. , and 

 by contract^ may be as high as 10. The proportion of farms mort- 

 gaged is quite small, the loans generally made by institutions known 

 as loan banks. Farmers have some real and personal property inter- 

 ests, in town and country, not connected with agriculture. 



NORTH CAROLINA. 



In North Carolina the legal rate of interest is 6 per cent., but 8 may 

 be charged upon agreement in writing. Yet this minimum charge 

 is easily and largely exceeded. When the planter needs assistance 

 from the merchant, the latter agrees to advance the supplies to a 

 certain amount, taking a mortgage on the coming crop, payable when 

 the crop matures. He then charges the farmer his own figures for 

 supplies, from 15 to 25 per cent, more than cash price, thus compell- 



