STUDY OP FARMING IN SUMTER COUNTY, GEORGIA. 21 



for the cotton. Ordinarily the rent is on the basis of the number 

 of mules necessary in operating the farm. The rent ranges from 

 2 to 3 bales per mule. 



The landlords renting to white tenants had an average investment 

 of $4,795 per tenant, and made a profit of 7.3 per cent. One land- 

 lord rented for cash and received 5 per cent upon his investment. 



The average investment of the landlords renting to colored ten- 

 ants was $2,719 per tenant, and they made a profit of 8.9 per cent. 

 One of these farms was rented for cash and returned the landlord 

 4 per cent. 



The profits that landlords realize on many of these farms are not 

 comparable with the incomes of landlords in the Northern States. 

 More or less supervision is given many of these tenants. The land- 

 lord in many cases gives security for tenants' credit or gives orders 

 on stores for provisions and other supplies, settling with the ten- 

 ants when the cotton is sold. Where no supervision is exercised by 

 the landlord, the land worked by many of these tenants becomes 

 more or less impoverished. 



THE RELATION OF TENURE TO FARM LOANS AND INTEREST RATES. 



It is an old and well-established custom in this region for farmers 

 to borrow money for carrying on their business during the year. 

 There are many ways of handling this loan, but the method quite 

 generally used is that in which the farmer goes to the bank at the 

 beginning of the year, places his order for the season's loan, and 

 draws it out as needed. This yearly loan is considered entirely sepa- 

 rate from the mortgage loan which some of them carry. The mort- 

 gage loan refers to real estate indebtedness or to debts carried over 

 from previous years. In Table V is shown the average amount of 

 yearly loan and interest rates paid on farms operated under different 

 forms of tenure. 



Out of the 268 white owners, 60 per cent reported borrowing 

 money for carrying on their year's business. They borrowed on the 

 average $940 each, at an average rate of 7 per cent. The men on 

 farms of 150 or fewer tilled acres were pajung 7.8 per cent, while the 

 men on the larger farms paid 6.8 per cent. Undoubtedly the higher 

 interest rates paid on the small farms were largely due to the small 

 amounts borrowed. The men on the smaller farms only borrowed 

 an average of $286 per year to meet their expenses, while the larger 

 farmers borrowed $1,635. The small farmer evidently is just as safe. 

 as only 33 per cent of them reported a farm mortgage, whereas 44 

 per cent of the larger farms were mortgaged. On the average the 

 smaller farms had a mortgage of $1,488 and paid 7.7 per cent in- 

 terest. The larger farmers borrowed an average of $8,623 and paid 

 6.6 per cent interest. 



