tfAKM MORTGAGE LOANS BY BANKS, ETC. 5 
LOANS FROM STATE FUNDS OR AGENCIES. 
Considering the United States as a whole, the credit extended by 
so-called State agencies is rather insignificant. In a few of the 
States, however, especially South Dakota, Utah, Oklahoma, and 
Oregon, this source of credit has been of material aid to the farmers. 
In South Dakota and Oregon, systems are in operation under which 
State bonds are issued on the basis of first mortgages in a manner 
resembling that followed by the Federal Farm Loan System. In 
South Dakota 29 of the 37 million dollars of State loans indicated 
are from its rural credit system and the remainder from the public- 
school fund of the State. In Oklahoma bonds may be issued on the 
basis of second mortgages accepted under the so-called home owner- 
ship law. In the remaining 10 States the loans indicated for State 
agencies are from funds which originated chiefly through the sale of 
land belonging to the State schools or charitable institutions. In 
February of this year Wyoming enacted a rural credit law which 
authorizes loans to farmers on first mortgages from the common 
school permanent land fund. Although the system has not been in 
operation sufficiently long to permit the extension of much credit, 
the law provides that such loans may be made for a total not exceed- 
ing $1,000,000. 
LOANS BY FARM MORTGAGE BANKERS. 
The figures presented for the mortgage bankers are by far the most 
fragmentary of all. Questionnaires were sent to 132 of the more 
important farm mortgage bankers in the various States whose names 
and addresses were available. Sixty-four companies replied. In 
addition to the $253,313,656 of farm mortgages reported as held, 
$82,364,385 of farm mortgages had been sold to investors during the 
year. As might be expected, these companies are located chiefly in 
the larger cities of agricultural sections and place loans either in 
their own or in nearby States. These firms, therefore, constitute an 
important factor in meeting the demand for farm mortgage securities 
by investors, and thereby materially enlarge the source of such loans 
to the farmer. 
OTHER SOURCES. 
The five sources discussed above account for only about 40 per 
cent of the farm mortgage credit as indicated by the estimated 
mortgage debt. Undoubtedly, former owners and private investors 
constitute two of the most important sources for which no figures 
are available. In certain sections of the country it is a common 
practice for the seller to take a mortgage on the land as security for 
a liberal portion of the sale price. When a mortgage already exists 
