248 THE HIGH COST OF LIVING 



As part of the exhibits in its investigation of 

 usurious interest, the Comptroller's office asked a 

 certain national bank for the record of its loans 

 to one particular borrower chosen at random from 

 a number to whom a series of loans had been made. 

 The bank was requested to send in a list of all the 

 loans made to this borrower during the preceding 

 twelve months. The bank submitted under oath 

 a list of 29 loans made to the borrower, a woman 

 living on a farm six or seven miles from the town 

 in which the bank was located. The loans were 

 all for small sums and on short time, the largest 

 amount being $620, which was borrowed for twenty- 

 three days. The interest rate on the 29 loans ranged 

 from 36 per cent, to 2,000 per cent, per annum. 

 Of the 29 loans 21 bore interest at the rate of 100 

 per cent, or more. Fortunately, in this case the 

 borrower was able to pay all the notes in full. 



One Oklahoma bank in its list of loans at interest 

 rates exceeding 12 per cent., issued from January 1, 

 1915, to November 10, 1915, reported 184 at rates 

 exceeding 150 per cent., 75 of which were at rates 

 exceeding 300 per cent. Thirty-three paid interest 

 charges of 500 per cent, per annum or more. In the 

 town in which this bank is situated there are two 

 national banks and two State banks, and one 

 might suppose that competition would reduce these 

 high rates. But the borrower apparently derives 

 no benefit from any such competition. The list of 



