INTEREST RATES ON SHORT- TIME FARM LOANS. 3 
these factors may be noted in a comparison of the district averages 
for the cost of short-time loans as shown in the table below. The 
rapid rise in interest rates as one proceeds westward within the 
States of Kansas, Nebraska, South Dakota, and North Dakota 
illustrates clearly the effect of diminishing rainfall. The fact that 
the rates are lower in northern Illinois than in the southern part of 
the State is accounted for partly as the indirect effect of soil condi- 
tions, while the lower rates prevailing in the northwestern part of 
Minnesota (the valley of the Red River of the North) in contrast with 
those existing in the north-central part of the same State are indi- 
rectly explained as the effect of the soil and contour conditions of 
these regions. 
While the effect of natural conditions on existing interest rates is 
thus apparent, and while the natural conditions themselves appear 
to be relatively permanent, it does not necessarily follow that interest 
rates must continue to vary to the extent shown in the table. For 
the disadvantages of certain natural conditions have been offset in 
some measure in certain regions by the adoption of farming methods 
and practices adapted to the given conditions. It is believed that, 
as a result of continued study and experiment, there may be further 
improvement of this character in regions where natural conditions 
are relatively unfavorable. * 
Loans to farmers on personal security — Average rates for interest and for total cost, by 
States and districts. 
Geographic division, State, 
and district. 
Loans on personal 
security. 
Geographic division, State, 
and district. 
Loans on personal 
security. 
Average 
interest 
rate. 
Average 
total 
cost. 1 
Average 
interest 
rate. 
Average 
total 
cost. 1 
NEW ENGLAND. 
Maine 
6.5 
6.0 
5.9 
6.0 
6.1 
5.9 
5.9 
5.8 
6.0 
6.0 
5.9 
5.9 
6.0 
6.0 
6.0 
5.8 
5.9 
6.1 
6.0 
5.9 
6.0 
&4 
6.4 
■6.5 
7.1 
6.2 
7.0 
6.5 
6.6 
7.3 
6.5 
7.4 
7.1 
7.2 
7.1 
6.6 
6.9 
7.5 
( 2 ) 
6.2 
6.8 
middle Atlantic— continued. 
Pennsylvania— Continued. 
5.8 
6.0 
5.9 
5.6 
5. 7 
6.4 
6.9 
5.9 
6.2 
6.4 
6.5 
6.2 
6.3 
7.0 
6.3 
6.9 
7.1 
6.9 
6.4 
7.3 
6.6 
District 6 
7.8 
7.4 
District 9 
6.4 
MIDDLE ATLANTIC. 
EAST NORTH CENTRAL. 
Ohio 
7.2 
District 2 
7.9 
District 2 
6.2 
District 3 
7.1 
6.9 
7.7 
District 7 . . . 
District 6 
6.7 
District 7 
6.9 
District 9 . . . 
District 8 
7.2 
New Jersey 
District 9 
6.9 
7.6 
7.5 
District 2 
Districts 
7.9 
District 3 
District 3 
6.6 
District 4 
District 4 
8.2 
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 showing of a district average. 
