THE FARMER'S MEANS OF ACQUIRING LAND 227 



is free to improve the land as he chooses, knowing the benefits 

 will be his own. 



Farm mortgage indebtedness was first reported by the United 

 States Bureau of the Census for 1890. At that time 28.2 per 

 cent of the farms operated by their owners were mortgaged. 

 In 1900 the percentage was 31, and in 1910 it was 33.6. The 

 total encumbrance reported was $1,085,995,960 in 1890 and 

 $1,726,172,851 in 1910. The former represented 35.5 per cent 

 of the value of the mortgaged farms, while the latter represented 

 only 27.3 per cent. The lower rate is explained by the fact of 

 increased land values. 



Throughout the southern states, where the percentage of 

 tenancy is high, the percentage of mortgaged farms is low as 

 compared with the percentage in the North, where the mortgage 

 is used largely as a means of acquiring landownership on the 

 part of young men. At the same time retiring farmers favor the 

 plan of selling the farm and leaving a large share of its value 

 in the land, taking a mortgage for security. This not only 

 facilitates the climbing of the agricultural ladder on the part 

 of the young farmer, but it aids the old farmer in making a safe 

 retreat from the farm, giving him plenty of time to familiarize 

 himself with other forms of investment before withdrawing 

 his funds entirely from the form of investment which he under- 

 stands. 



The extent to which mortgages are given to cover a part of 

 the purchase price is illustrated by the following quotation 

 taken from a special study made in connection with the census 

 for 1890 : 



"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 complicated 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 



