The Nonpartisan Leader Newspaper, August 24, 1916, Page 20

<« ? N Dakota farmers have to’ pay one of the highest rates charged according to bulletin 384 of the United States department of agriculture. - The bulletin is by .C. W. Thompson, specialist in rural organization of the department: _ The report covers only first mortgage farm land loans and not short-time loans on personal credit, rates on which are far in excess of those on first mort- gage farm- loans. Of first mortgage Joans there are in North Dakota $100,- 364,000, according to Mr. Thompson’s estimate, and the farmers are paying on them an average interest rate of 6.9 per_ cent, plus -annual commissions to bankers and brokers of 1.8 per cent, making_ total 'interest 8.7 per cent per annum. ‘With the exception of- Mon- tana and a few of the mountain and ~ southern states this is the highest rate’ . on:this class of loans paid by farmers anywhere in the country. OTHER STATES PAY - LESS THAN NORTH DAKOTA A compafison with other norfhwestém # rate’ is. Minnesota pays a total rate (plus commission) of 6.8 per cent; Iowa, 5.9 per cent; Missouri, -6.8 ' per cent; South Dakota, 8 per cent; Nebraska, 7.1 per cent; Kansas, 6.9 per cent. The North Dakota rate of 8.7 per cent is more than 2 per cent higher than some of these neighboring states. The only states that pay a higher rate than North -Dakota are Wyoming and Montana, which pay an average of 10 per cent; Florida, which pays 9.6 per cent; Alabama, which pays 9.4; Arkansas, which pays 9.6; Texas, which pays 9; Idaho and Colorado, which pay 8.9; New Mexico, which pays 10.5; Arizona, which pays 9.4, and Utah, which pays 9. HIGH PERCENTAGE OF LOANS MADE AT USURIOUS RATES North Dakota seems to have gotten a COLD AIR ’..‘.Q.Q.‘...-.......... .’....i...,.............Q.l.....60,.......C.‘0..00...0.......0. 3 orth Dakota 1. ' states shows how high the North Dakota -~ Prices Cut One-third Off, F. O. B. Fargo _ No. 220 with 20-inch fire pot for 4-room house....... _ Loi.$ 95.00 No. 322 with 22-inch fire pot for 4 to 7-room house.__ No. 424 with 24-inch fire pot for 7 to 9-room house. No. 626 with 26-inch fire pot for 9 to 12-room house.________110.00 Johnson Heating Co., Fargo, N.D. ‘Cost to Farmers of First Mortgages anywhere in the United States 1iXC€€dS Charge in Most Other States worse deal in first mortgage farm loans How high the North Dakota rate/ is com- than any other state similarly situated. pared with eastern states is. shown by the The above is a map of North Dakota -divided up into nine districts, to show the average-interest rate for first farm_mortgages in various parts of the state. heavy black lines mark the boundaries of the districts in-which the interest rate has been figured and the lighter lines are county and, in some instances, legislative dis- Districts 3, 6 and 9, including the Red River valley and directly tributary to the state’s two biggest cities, Grand Forks and Fargo, have the smallest trict boundaries. interest rate. Districts 2, 5 and 8, taking in the cen substantially higher than the eastern districts. Di Wwestern part of the state, pay .the highest interest rates. e T AT 4 > e e oan Rates High - - following: Maine, 6.2 per cent; Ver- mont, 5:6; New Jersey, 5.8; Ohio, 6.1; Illinois, 6; Wisconsin, 5.8. - . of the causes of the high price of these loans-is the large commission charged by bankers and brokers for negotiating them. The. average annual commission on loans of this kind in North Dakota is reported as 1.8 per cent, the highest com- mission charged by bankers and brokers in any part of the United States. In no state is a higher commission charged and in only one is as high a commission charged. The same commissicn, 1.8, is charged in Oklahoma, notorious for its usury. . The bulletin brings out a number of interesting facts about” North Dakota first mortgage loans. None of them are at 7, 8, 9 and 10 per cent. Twenty- seven per cent of them are made at 10 per cent and nearly 6 per cent of them are made at 11, 12 and over 12 per cent, which is usury under the law. It must be remembered that these are land loans “on first mortgages, secured by the best agricultural land in the world. Yet over 30 per cent of them are made in North "Dakota at 10 per cent or over. Rates of this kind might be excusable to a . greater extent if they were on’ loans secured by chattel mortgages or merely personal credit loans. But they are land loans. It is also interesting to consider .the rates-in different parts of North Dakota .as shown by the tables in the bulletin. The Red River valley pays the lowest (Continued on page 23) The tral zone of the state, pay rates stricts 1, 4 and 7, the extreme The average interest rate and the average annual commission on loans charged by banks or money lenders, together with the-total rate the farmer has to pay, gures for the various districts: sion, '1.9; total, 8.6 per cent. District 4—Interest, 7.7; commission, 2.4; total, 10.1. .mission, 1.4; total, 8.2. District trict 7—Interest; 7.3; commission, 2.8; total, 10.1. average for all of North Dakota is as. follows total, 8.7. ® [ d o (3 [ [ [ [ e [ (3 [d (4 [J (3 [ 4 ® [ 3 (3 [J [d (3 © [ 4 (3 [ (3 [ [ o ° [d [d [ (4 [d (3 (3 ° [ J [d [d [d ° [ [d o ° ° [d [ [d [J [ °- o [ ° [ ] [ [ [ J [d [d [ J (3 co;o AIR BECAUSE Of : \7‘ the cropbeing short in a large part of our terri- we have on hand about 100 Vac- uum Furnaces more than we caretocarryover to next year. . Our loss—your gain. So ' here goes the price, just ‘enough charged to let us out but gets you one of absolutely the best furnaces on the. market for as-little money as it is . possible to build- it. lI;,Iurry now, they won’t last ng. e Write for our testimopials of. North Dakota users. See. what they say. — 100.00 104.00 District 1—Interest, 6.8 per cent; commission, 2.2; total rate for farm land loans, 9 per cent. District 2—Interest, 6.7 per cent; commis- District 3—Interest 6.3; commission, 1.3; total 7.6. 6—Interest, 6.4; commission, 1; total, 7.4. Dis- District 8—Interest, 7.8; commis- sion, 1.8; total, 9.6. District 9—Interest, 6.5; commission, 1.2; total, 7.7. The tory we find that . > - JOHNSON HEATING C0,, . one of your No......._.... Furnaces, balance of $.._. . - I will pay at my railroad station." : ’ : “ A GOOD SCHOOL Thorough Courses, Trained Gourges. Business, Shorthand, Service and English. FREE TUITION to students ' who enroll. are shown in the following n Teachers. Distooet ot s tenotypy, Civil 1STI1 5— ' 2-H = < erest, 6.8; com first one hundred Write for information. INTERSTATE BUSINESS COLLEGE Fargo, N. D. O. C. Heilman 309 Broadway Ww. Interest, 6.9; commission, 1.8; H. Bergherm ~ Props. The Circulation Principle Cut the coupcn below and send it in tbgether 5 - with your check or money- order for $25 and - we will ship the complete furnace, the size you want, to your station—you pay balance there. i —ivia Gentlemen; - 3 ; « . Find enclosed check for $25 for which please ship me . ‘Town__.f_1~ i It appears from the bulletin that one . - made at a rate as low as 5 per cent, only - a very few at 6 per cent and the bulk - T T T S A A N £ 1 14 2 £ e = BSOS LSRR s —n