INTEREST ON FARM LOANS 



703 



REPRESENTATIVE HAWLEY: That is, the west side of the state 

 has a higher rate than the east side ? 



MR. THOMPSON: Yes, except that the northwestern district has 

 a lower rate because of its proximity to Sioux City. 



Let us next consider the case of Wisconsin. Wisconsin has an 

 average total rate of 7 per cent. The three districts across the top 

 [indicating], away up in the northern part of the state, are relatively 

 undeveloped, and have the following averages: 8.4, 7.8, and 8.1. 

 Coming down to the second tier, you have 7 . 2, 6 .7, and 6.3. Now, 

 notice the lowest row, the bottom or southern row, in Wisconsin: 

 There you have 6 .8, 6 .3, and 6.1, and you notice the 6 . i, the lowest 

 average, is for the district nearest to Chicago. 



SENATOR SMITH: It is also the section that has more diversified 

 agriculture, selling the entire year through. 



MR. THOMPSON: Yes; and it is also a section that has relatively 

 a very large amount of local capital available for loans, and that is 

 a very important factor. 



REPRESENTATIVE PHELAN: What is the average rate for Wis- 

 consin ? 



MR. THOMPSON: The average total rate for Wisconsin is 7 per 

 cent. There are other states that correspond to the one I have just 

 cited there. Take, for instance, the state of Minnesota. The average 

 total cost for the state is 9 . 2 per cent. If you take the tier at the top 

 of the state you have 10.6 and 1.1.4, the highest rate being in the 

 north central part of the state. If we were to take the figures I cited 

 for mortgage loans, you would find similar conditions, the highest 

 figures being right up there [indicating] in the north central part, 

 away up in the woods. The second tier, districts 4, 5, and 6, shows 

 8.7, 9, and 9. 4. 



Notice the southern districts [indicating]. Their averages from 

 west to east are 9, 8.4, and 6.9. The interesting part there is that 

 the averages for personal loans vary about i per cent between each 

 district, while the figures for mortgage loans are practically the same 

 in these districts. This is explained by the fact that the mortgage 

 rates are dependent upon other considerations than those that estab- 

 lish the short-time rates for a given district/ In other words, the 

 capital that goes into the one presents problems different from that 

 which goes into the other. 



SENATOR SMITH: The stable value of the land is the same? 



MR. THOMPSON: Yes. 



