26 MASS. EXPERIMENT STATION BULLETIN 405 



It is difficult to determine how long notes have been outstanding. If the note 

 has s'mply been renewed as it came due, the task becomes easier. However, 

 refinancing through different sources or some other refinancing would show a 

 younger note than the original borrowing. Neverthless, the best approximation 

 which can be obtained by questioning farmers gives an idea of the long time which 

 some notes run, and is shown in Table 32. Instead of sorting the notes for size 

 on the basis of the amount due, the original amount of the note was used. 



Table 32. — Age of Notes Outstanding on 106 Massachusetts Farms, 

 March 1, 1941 — Showing Original Amount of Note. 



Of the notes outstanding, 64 percent had been made within a year of the 

 inventory date, 19 percent within two years, 9 percent within three years, and 6 

 percent were over three years old. One note had run for 17 years. The amount of 

 credit that had been outstanding over a year was 64 percent. However, some of 

 the notes which had run for longer periods were not for large amounts. Half 

 of those which had run over two yeArs and 30 percent of those which had run over 

 three years were originally written for $600 or less. 



Of the notes made during all periods, 67 percent were originally for $600 or 

 less. This checks closely with the amount of notes outstanding per farm, which 

 shows 64 percent of farms with notes owing $600 or less on them. 



Summary of Notes 



In comparison with mortgages, notes were distinctly of secondary importance 

 in amount outstanding. On the 257 owner-operated farms, notes were 13 per- 

 cent and mortgages 78 percent of the total debt. However, of the debt other than 

 mortgages, notes were of primary importance, comprising 57 percent of this 

 debt. With respect to the number of borrowers, open accounts were slightly 

 more important; only 39 percent of the farmers had notes outstanding, while 48 

 percent were in debt on open accounts. 



The amount outstanding on notes averaged $406 for all farms and $1042 for 

 those with notes; and ranged from $21 to $20,000. Of the notes outstanding, 

 64 percent were for no more than $600, but these accounted for only 15 percent 

 of the total amount due on notes. On 67 percent of the notes the original amount 

 was no more than 



