6 BULLETIN 1048, TJ. S. DEPARTMENT OF AGEICULTUEE. 
of outstanding debt during the last three months of the year was far 
less than those familiar with farm financial practice would normally 
expect. This feature of the diagram, therefore, emphasizes the fact 
that 1920 was decidedly an abnormal year. 
For the New England States a rather unexpected curve occurs. 
In view of the importance of dairying and truck gardening in these 
States and the comparatively steady income from these activities, 
one would hardly expect a variation during the year of over 40 
points. In only two geographic divisions, namely, the South Atlantic 
and the West South Central, was a greater variation shown. It may 
also be noted that for New England and also for the Middle Atlantic 
division the curves continue upward, and reach their peaks in Decem- 
ber. This fact would lead one to believe that the banks in these two 
sections were in a position to continue extending credit for a longer 
time after the arrival of the credit stringency than was the case 
elsewhere. 
In the East North Central, West North Central, and Pacific divi- 
sions the amounts outstanding were remarkably uniform during the 
entire year. This fact is no doubt accounted for, at least in part, by 
the diversified farming which is practiced in these three sections, but 
perhaps also by the fact that toward tha end of the season farmers 
found it difficult, and in some cases impossible, to obtain the credit 
they desired and needed. In the South Atlantic, East South Central, 
and West South Central divisions the fluctuations were marked. In 
these areas a great deal of money is borrowed for the purchase of 
fertilizer and for food and feed during the crop-producing season. 
The credit curves, therefore, begin to rise at once, and continue up- 
ward until October. During October, November, and December a 
slight decrease is shown, which, however, doubtless falls far short 
of amounting to a normal contraction. The Mountain division has 
what appears to be more nearly a normal curve. The peak for the 
Mountain division came in August. During the last four months of 
1920 there was a marked contraction of loans in this area, reflecting in 
part, no doubt, a rapid marketing of live stock. 
RATES OF INTEREST. 
The average low, high, and prevailing rates of interest for short- 
time loans to farmers as reported by the banks are shown in Table 2, 
loans of $100 or more and loans of less than $100 being classified 
separately. In examining these rates it should be kept in mind that 
the reports were received mainly during March, 1921, which was ap- 
proximately the peak for interest rates throughout the United States. 
An average prevailing rate of 7.96 per cent on short-time loans of $100 
or more is indeed high. However, as compared with the rates of 
