323] The Condition of the Western Farmer. 45 



But in time real estate became of importance as security. 

 The agent of the first company that loaned money upon real 

 estate in this part of Nebraska appeared about 1875, and 

 twelve per cent was the rate of interest demanded, with a 

 bonus of from ten per cent to twenty-five per cent for com- 

 mission. The rates have gradually lowered; in 1880 they 

 were eight per cent interest and two per cent commission; 

 then seven and two; later, seven and one; and now the 

 current rate is six and one, while a certain large life 

 insurance company will make all good loans of over 

 $2000 that are desired at six per cent without commission. 

 But for a long time the chattel mortgage held its own 

 and was the form of security regularly in use for borrow- 

 ing money; even the most well-to-do did not hesitate to 

 allow such mortgages to appear on record against them. 

 This has changed to a certain extent, however, and real 

 estate or personal security is coming to be given in pref- 

 erence by the more prosperous farmers. Chattel mortgages 

 are still frequently given by cattle-feeders as security for their 

 extra purchases of stock for winter feeding, but even in this 

 line of business they are less common than formerly. The 

 amount of money now borrowed on personal security, or 

 simply on individual note, is not large, for only the more 

 prosperous can so borrow, and they are just those who want 

 to and who do borrow the least. I was allowed to examine 

 the books of a bank that does perhaps the greater part of the 

 business of this township, and found only an insignificant 

 amount of this last variety of paper. 



Those few settlers who were able to borrow of a father or 

 of other relatives in the eastern states had a very great ad- 

 vantage, especially in the first years of residence, as in trying - 

 times they could count on aid without having to pay the 

 exorbitant interest charged by local lenders. Many were the 

 occasions for borrowing in the early days; but most of the 

 debt was incurred either to provide sustenance during a year 

 of lost crops, or to make improvements, or to settle an 

 unpaid balance of purchase money. 



