AGRICULTURAL CREDIT IN THE UNITED STATES 939 



mortgage indebtedness for all owners in 19 10, that is, for all 

 owned farm homes, is estimated to be $2,293,000,000. 



On the assumption that the average mortgage indebtedness on 

 farms operated by tenants is slightly below that for those oper- 

 ated by owners, the mortgage indebtedness on such farms is 

 estimated to be $500,000,000, making a total mortgage indebted- 

 ness on all farms of $2,793,000,000. In the discussion which 

 follows, the mortgage indebtedness on tenant farms is not in- 

 cluded. On the basis of the estimated debt of $1,085,995,960, 

 as reported by the census of 1890 on owned farm homes, and 

 the estimated indebtedness for similar homes in 19 10, amounting 

 to $1,726,172,851, the increase in the mortgage debt for the 

 twenty years from 1890 to 1910 is iii.i per cent. 



The question naturally arises. For what purpose was this huge 

 additional debt incurred ? The census did not inquire into the 

 subject, but George K. Holmes estimates that about 64.4 per 

 cent of the total debt in 1890 grew out of ownership, either 

 through purchase or through inheritance ; and he thinks that 

 probably this statement is equally applicable to the year 19 10. 

 When land values increase, ownership becomes more difficult, 

 and the increase of mortgage indebtedness is inevitable. During 

 the period 1890-19 10 the value of land and its improvements 

 for the country as a whole increased 100 per cent, and this, 

 coupled with frequency of land transfers, resulted in a great 

 increase of mortgage indebtedness. 



The farmer has also made heavy expenditures to raise his 

 standard of living and has spent large sums on improvements 

 and equipment and in working capital. The value of buildings, 

 apart from that of the land, was not given by the census of 

 1890, but was given in 1900 and 19 10, and comparison shows 

 an increase of 77.8 per cent. During the same decade value of 

 implements and machinery increased 68.7 per cent, while the 

 expenditure for labor increased 82.3 per cent, and that for fer- 

 tilizer, 115 per cent. These increased expenditures for equip- 

 ment and operation are the result of the normal development 

 of agriculture, since they arise out of a growing necessity for 

 greater intensity of cultivation. Animals are of better quality 



