INTEREST ON FARM LOANS 



705 



obtain; on the other hand, to the extent that the capital is supplied 

 locally direct to the farmer from the source of capital, to that extent 

 the charge will be one straight interest charge, ordinarily. The states 

 I have cited, namely, North Dakota, Oklahoma, Georgia, and Mon- 

 tana, do receive relatively very large parts of the capital they have 

 from the outside, from a distance. 



EXHIBIT D 

 FARM MORTGAGE LOANS-I-AVERAGE RATES FOR INTEREST AND COMMISSION 



*Where the report shows a commission paid once for all in advance on a loan running more 

 than one year, the equivalent annual commission is used. 

 tLess than one-tenth of i per cent. 



The next table (Exhibit E) shows the relative importance of 

 instalment-commission, advance-commission, and no-commission 

 loans, by states; that is, it indicates the percentages of the total 

 mortgage business in each state on which annual or instalment com- 

 missions and advance commissions are charged and the percentage 

 on which no commissions are charged. 



In certain states, in the New England States, and in the more 

 highly developed agricultural states of the corn belt, the averages for 

 commissions are relatively low; also the total costs run highest in 



