INTEREST ON FARM LOANS 



701 



EXHIBIT A 

 LOANS TO FARMERS ON PERSONAL SECURITY AVERAGE RATES FOR INTEREST AND FOR TOTAL Cosr 



* Average of estimated 'total cost, including "discounts, bonuses, commissions, and any othei 

 extra charges," as reported by correspondents. 



The trouble with averages, of course, always is that they merge 

 extremes. But I have here a table (Exhibit B) which shows the 

 variations in the interest rates reported from each state and the per- 

 centage of the total number of reports for each rate. 



These tables refer to all loans made to farmers, by individuals as 

 well as banks. The total costs on loans are shown to be lowest in 

 Connecticut and highest in the southern and Rocky Mountain section. 

 The extreme state average is Oklahoma, 15.6 per cent. 



(Exhibit C showed the variations in interest rate and total costs 

 of loans within the state, separate figures being presented for each of 

 the nine crop-reporting districts of the state. EDITOR.) 



CHAIRMAN Moss: In that connection, Mr. Thompson, were there 

 any factors pointed out or called to your attention as to what caused 

 the variation in the different districts ? 



MR. THOMPSON: Yes. Let us take a state like Iowa and note 

 just how the figures run there, where the state average is 7 .9 per cent. 

 The top row is 7 . 9, 8 . 2, and 7 . 8. Then, the second row is 8 . 2, 7 . 4, 



