00 



BULLETIN 492, U. S. DEPARTMENT OF \< ;i;ict' LTURE. 



Of the white tenants, M per ii'iit borrowed money for expenses. 

 These men borrowed an average of $309 per year and paid 8.8 per 

 cent interest. Over one-fourth (26 per cent) reported mortgages, 

 averaging $353, with interest charges averaging 9.1 per cent. This 

 mortgage represents 57 per cent of the total capital owned by these 

 men. The amount these men borrow does not have so much influence 

 upon the interest rate they pay as in case of the farm owners. The 

 risk is much greater in making loans to men who own no real estate. 



The yearly loan was practiced by 94 per cent of the colored 

 owners. These men paid somewhat higher rates of interest than the 

 white owners, but the white owners borrowed three times as much 

 per farm as did the colored owners. Of the latter, those in the 

 smaller-size group borrowed $206 each and paid 10.3 per cent, 

 while on the larger farms they borrowed $596 each and paid interest 

 at the rate of 9.1 per cent. Data regarding the farm mortgages of 

 these colored owners were not complete enough to be included in 

 this table. On the average for all the owner farms the interest rate 

 is about 1 per cent cheaper on the larger farms than on the farms of 

 the smaller-size group. 



All but 6 of the colored tenants carried their yearly farm expenses 

 on borrowed money. In many cases this money was either borrowed 

 by the landlord and given out in small quantities to them or else he 

 stood good for their loan. They borrowed an average of $153 apiece 

 and paid interest at the rate of 10.6 per cent. Data were not com- 

 plete regarding the number of these tenants carrying a mortgage 

 on their working capital, but for those reporting, the average capital 

 was $176, the mortgage $281, and the interest rate 10.5 per cent. 

 Money loaned under these circumstances involves great risk, and con- 

 sequently the interest rate is correspondingly high. 



Table V. — Relation of tenure to farm loans and interest rates {Sumter 



County, Ga.). 





Farms of 150 tilled acres 

 or fewer in size. 



Farms over 150 tilled 

 acres in size. 



All farms. 



Tenure. 



Per 

 cent of 

 farms 

 report- 

 ing. 



Amount 

 of loan. 



Inter- 

 est 

 rate. 



Per 

 c f e "l ' Amount 

 rprt of loan. 



ing- 



Inter- 

 est 

 rate. 



Per 



cent of 

 farms 

 report- 

 ing. 



Amount 

 of loan. 



Inter- 

 est 

 rate. 



268 white-owner farms: 



Yearly loan 



Mortgage loan 



49 white tenants: 



Yearly loan 



53 

 33 



82 

 27 



96 



97 



$286 

 1,488 



228 

 265 



206 



145 



Per ct. 

 7.8 



7.7 



8.9 

 8.8 



10.3 



10.6 



70 ! SI, 635 

 44 i 8, 623 



100 890 

 (a) 



Pcrct. 

 6.8 

 6.6 



8.7 



60 

 38 



84 

 26 



94 



97 



$940 

 4,949 



309 

 363 



313 



153 



Per ct. 



7 

 6.8 



8.8 

 9.1 



31 colored owners: 



89 596 



75 633 



9.4 

 10.6 



9.8 



186 colored tenants: 



10.6 













a Only one farm reporting. 



