6 BULLETIN 409, U. S. DEPARTMENT OF AGRICULTURE. 
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. 
Geographic division, State, 
and district. 
Loans on personal 
security. 
Averarge 
interest 
rate. 
Average 
total 
cost.i 
Average 
interest 
rate. 
Average 
total 
cost.i 
m OUNTAIN— continued . 
Idaho — Continued. 
District 8 
10.1 
10.5 
10.2 
10.6 
10.3 
8.4 
10.3 
10.8 
9.9 
10.3 
13.0 
12.1 
10.1 
11.4 
10.0 
8.8 
9.8 
9.3 
11.2 
10.8 
9.0 
11.4 
11.3 
11.0 
11.5 
10.7 
8.8 
10.9 
11.9 
11.1 
11.2 
13.6 
( 2 ) 
10.8 
13.8 
11.1 
10.4 
11.4 
13.2 
13.5 
12.3 
10.5 
pacific — continued . 
Washington— Continued. 
11.1 
9.8 
8.4 
9.7 
9.8 
8.4 
8.0 
9.1 
9.0 
7.8 
8.5 
8.7 
( 2 ) 
( 2 ) 
8.4 
7.3 
8.8 
8.2 
7.9 
7.6 
8.9 
10.0 
( 2 ) 
8.4 
13.9 
11.0 
11.1 
10.8 
9.8 
9.6 
9.6 
9.5 
9.1 
8.8 
11.5 
9.7 
( 2 ) 
( 2 ) 
9.4 
9.4 
9 4 
District 9 
District 6 
Wyoming 
Colorado 
District 8 
District 1 
District- 2 
District3 
District 4 
District 5 
District 6 
District 7 
District8 
D istrict 9 
New Mexico 
District 9 
Utah 
District2 
PACIFIC. 
Districts 
9 6 
District 4 
8 6 
9.1 
9.7 
10 4 
District 1 
District 2 
District 6 
District3 
( 2 ) 
9 4 
District 4 
District8.. 
i 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. 
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 natural 
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 ability 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, 
