AGRICULTURAL ECONOMICS 



only 37.25 per cent, of the value of the encum- 

 bered farms, and 9.86 per cent, of the total value 

 of all farms in these six states. Thus while a 

 large per cent. (51.) of the farm-mortgage in- 

 debtedness of the United States is concentrated on 

 a small area, there is also a large per cent. (42.3) 

 of the farm values concentrated on the same area. 

 The following quotation from the Census Re- 

 port, throws much light upon the reasons why 

 mortgages are placed upon land : 



As a result of inquiries made in 102 selected counties, 

 distributed throughout the United States, the conclusion is 

 that 80.13 per cent, of the mortgages in force were made to 

 secure the purchase price of real estate and to make real 

 estate improvements, when these objects are not compli- 

 cated with other objects, and that the original amount of 

 these mortgages is 82.66 per cent, of the total original 

 amount of all mortgages in force. If to these objects are 

 added the objects of business and the purchase of various 

 articles of personal property of the more durable kind, such 

 as domestic animals, wagons, farm machines, when not com- 

 bined with other objects, the mortgages are 89.82 per cent, 

 of the entire number in force, and their original amount is 

 94.37 per cent, of the total original amount of all mortgages 



in force The mortgages distinctly representing a loss 



of wealth, or wealth soon to be consumed, are embraced in 

 the description of farm and family expenses, and their num- 

 ber is 5.4 per cent, of the total number of mortgages in force, 

 while their original amount is 1.73 per cent, of the total 

 original amount A distinction must be observed be- 

 tween the cause and the consequence of mortgages. The 

 mortgage, in its motive, is for the most part a mere business 

 venture, and, so far as foreclosures show, for the most part 



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