6 BULLETIN 409^ U. S. DEPARTMENT OF AGHICULTURE. 



Loans to farmers on personal security — Average rates for interest and for total cost, by 

 States and districts — Continued. 



Geographic division, State, 

 and district. 



Loans on personal 



security. 



Averarge 



Average 



interest 



total 



rate. ■ 



cost.i 



10.1 



11.4 



10.5 



11.3 



10.2 



11.0 



10.6 



11.5 



10.3 



10.7 



8.4 



8.8 



10.3 



10.9 



10.8 



11.9 



9.9 



11.1 



10.3 



11.2 



13.0 



13.6 



12.1 



0) 



10.1 



10.8 



11.4 



13.8 



10.0 



11.1 



8.8 



10.4 



9.8 



11.4 



9.3 



13.2 



11.2 



13.5 



10.8 



12.3 



9.0 



10.5 



Loans on personal 

 security. 



Geographic division. State, 

 and district. 



MOUNTAIN — continued 



Idaho — Continued . 



District 8 



District 9 



Wyoming 



Colorado 



District 1 



District 2 



Districts 



District 4 



District5 



District 6 



District? , 



Districts , 



District9 



New Mexico 



Arizona 



Utah 



PACIFIC. 



Washington 



District 1 



District2 



Districts 



District 4 



PACIFIC — continued . 



Wasliitigton— Continued . 



District 5 



District 6 



District? 



Districts 



District 9 , 



Oregon , 



District 1 



District2 



Districts 



District 4 , 



Districts 



District? 



Districts , 



District 9 



California 



District 1 



District 2 



Districts 



District 4 



Districts 



District 5a 



District 6 , 



District 6a 



Districts 



1 Average of estimated total cost (rate per cent), including "discounts, bonuses, commissions, and any 

 other extra charges," as reported by correspondents. 



2 Data at hand not sufficient to warrant the showiug of a district average. 



DISTANCE FROM FINANCIAL CENTERS. 



The location of financial centers, which determines their distance 

 from the borrowers in a given community, conforms to the localization 

 of commerce and industry. The latter is generally governed by natm^al 

 conditions. This means that distance from financial centers as a 

 factor affecting interest rates is also relatively permanent, although 

 to a less degree than in the case of climate, contour, and soil condi- 

 tions. A study of the table on page 3, in connection with the 

 accompanying map, shows that the averages for the cost of loans 

 gradually rise as one proceeds outward from the leading financial 

 centers. It is believed that variations in interest rates attributable 

 to this factor can be considerably lessened, but the remedy for this 

 appears to lie in institutional rather than individual effort. 



CHARACTERISTICS OF THE BORROWER. 



PERSONAL CHARACTER. 



The borrower who is known to be a man of honesty and integrity 

 and who shows abiUty and judgment in the conduct of his farm 

 business will ordinarily command the confidence of his banker and 

 obtain credit on terms relatively favorable for his class of loans, 

 whereas the individual who is uncertain in his personal character, 



