BUYING FARMS WITH LAXD-BANK LOANS. 3 



or its methods. Since the organization of the system notable progress 

 has been made in extending its influence. Up to December 31. 1920. 

 loans amounting to $369,242,464 had been granted by the 12 Federal 

 land banks. Moreover, the ratio of the loans to the total number of 

 farms appears to be high in those sections of the country "where farm 

 credit had been costly to the farmer. (See fig. 1.) In fact, it is prob- 

 able that in parts of these regions the system has been an important 

 influence in improving the terms of credit obtained by the farmers 

 through private agencies.^ In short, the fundamental purpose of 

 the present study is merely to determine the extent to which the 

 system provides for the needs of the landless farmer seeking to 

 buy farm land. 



NUMBER OF 



Pig. 2.— Distribution of some 2,700 replies received to questionnaire. 



Some information on this point has been published by the Fed- 

 eral Farm Loan Board. These figures are presented in the follow- 

 ing discussion. To supplement this information, 12,000 question- 

 naires were sent to persons who have borrowed under the Federal 

 farm loan system, ostensibly for the purpose of buying farm land.^ 

 Approximately 2,700 replies were received, distributed as shown in 

 the accompanying map (fig. 2). These replies constitute the prin- 

 cipal basis of the discussion which follows. 



The data are presented and interpreted on pages 5 to 20, follow- 

 ing. The general conclusion derived from the data will be found on 



1 Socoiul Annual Report. 05th Congress, 3d Session, House Document lGi!4, p. 5. 

 - The authors .ire indebted to the Federal Farm Loan Board for furnishing the ad- 

 drosses of these borrowers. 



