Farm-mortgage recordings, Minnesota

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Farm-mortgage recordings, Minnesota
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FARM-MORTGAGE RECORDINGS


MINNESOTA





...: ... ...., D OSITORY
;:,^:^ : :' : U.S. DEPOS ^''ij.. :!'!..-.!1 'a N" *
*.' .. !..::i ... .. :, .


"*I : ... .. ... .. .. ...... *- ** .........* ." *. ** .... ..-
Newly recorded farm mortgages by lending groups, annually,
-: 17--35, showing:
(a) Percentage distribution of total recordings,
(b) Average interest rates, and
(c) Average consideration


Washington, D. C.
November 1938


Air'
U.. H' Er:;









This is one of a series of individual State reports issued by the
Bureau of Agricultural Economics, summarizing data obtained in a Nation-wide
W. P. A. Project for the collection and tabulation of basic annual data con-
cerning farm mortgages, farm real-estate transfers, and farm taxes. This
project was conducted during 1936 and 1937 under the joint sponsorship of the
Works Progress Administration and the Bureau of Agricultural Economics.

The Agricultural Experiment Stations of 44 States cooperated with the
Bureau of Agricultural Economics and the Works Progress Administration in
supervising the collection of the data in their States. The field organizao
tion engaged in collecting the data consisted of county crews working in ap-
proximately 1,000 counties, or about one-third of all the counties in the
United States, with local, State, and regional supervision. The major part of
the field supervision and the tabulation work was handled by the project head-
quarters in Chicago, Illinois.

In the mortgage part of the project, a brief history was obtained from
official county records of each recorded farm mortgage. Acceptable records
were obtained in approximately 700 counties. The county data were summarized
and, for selected items, State averages were prepared. The analysis involved
in presenting this publication, incorporating part of the farm-mortgage data
obtained by the project in Minnesota, was carried out by the Bureau of Agri-
cultural Economics under the direction of E. J. Engquist, Jr., and H. T.
Lingard.

For the purpose of the study, a farm was defined as "a tract of land
comprising 3 acres or more, used principally for n.ricultural purposes, un-
platted, and lying outside the limits of incorporated places." A farm mort-
gage was defined as "any legal document making farm real estate security for
the repayment of a loan." MlortgL.ges, deeds of trust, vendors' liens, purchase-
money mortg- ,es, real-estate sales contracts, and all other legal instruments
evidencing liens on farm real estate were included. Because it was not always
possible from the description in the instrument to determine positively whether
a particular tract was used principally for agricultural purposes, some nonfartn
mortgages may have been included, although a conscious effort was made through-
out the project to identify and exclude such mortgages.

Only those mortgage recordings that constituted a new lien on farm real
estate were included. Mortgages arising out of the rewritings or refinancing
of existing mortgages, where the old liens were released of record and in some
cases where no release was recorded but an extinguishment in fact was apparent,
were considered new mortEPges. Changes in anny of the parties to a mortgage
and extensions or rewritings, for any reason other than the creation of a new
lien, were not considered as constituting new mortgages, but the net addition
to the amount of the existing debt resulting from any such change was included.

Data for other States, similar to those contained in this report, are
being prepared by the Bureau of Agricultural Economics, and copies may be ob-
tained, without charge, by writing to this Bureau.









FARB-MORTGAGE RECORDINGS IN MINNESOTA, ANNUALLY, 1917-35:
PERCETAGZ DISTRIBUTION OF TOTAL RECORDINGS, AVERAGE INTEREST BATES, AND
AVERAGE CONSIDERATION


Information regarding basic annual farm-mortgage data is essential
in analyzing trends in farm financing. In recognition of the need for such
information, the Bureau of Agricultural Economics in cooperation with the
Works Progress Administration sponsored a Nation-wide project during 1936 .and
1937 for the collection and tabulation of basic annual data concerning farm
mortgages, farm real-estate transfers,.and. farm taxes.

Three of the farm-mortgage series for the State of Minnesota are pre-
sented in this report. Each series covers mortgages, filed each. year during the
period 1917-35, inclusive. The first series shows the amount of farm-mortgage
loans recorded each year by each lending group, expressed as a percentage of
the total amount recorded in that year; the second series covers the average
rates of interest charged by lending groups on mortgages recorded; and the
third series shows the average size or consideration of recorded mortgages, by
lending groups. The three series are shown in tables 1, 2, and 3 and in fig&
ures 1, 2, and 3. The averages presented in this report for the period 1917-35
are based on 75,860 mortgages totaling $279:,556,446.

The counties originally selected in Minnesota f.or inclusion in this study
were chosen primarily because they represented distinct type-of-farming areas.
Availability of workers, space in courthouses in which to work, and the reli-
ability of field records were important factors in. determining the final number
of counties used. The' averages presented in this report are compiled from the
records of the following 16 counties: Beltrami, Big Stone, Brown, Clay, Crow
Wing, Marshall, Martin, Meeker, Morrison, Nobles, Olmstead, Otter Tail, Rock,
Stearns, Stevens, and Washington. These comprise about 20 percent of the 87
counties in the State.

The averages given in the tables that follow were obtained by combining
the basic data on number, consideration, and annual interest charges of the
mortgages recorded in the 16 counties. The average interest rates are obtained
by weighting each interest rate by the amount of mortgages recorded at that
rate.'


Distribution of Loans By Lending Grouns

Table 1 and figure 1 indicate for the period 1917-35 the percent of the
total amount of mortgage loans filed which were recorded annually by each
lending group.

For nearly the entire period covered in the atudy, individuals, national
and State banks, and insurance companies accounted for the largest proportion
of the total amount of farm mortgages recorded in Minnesota. These three lend-
ing groups made about 55 percent of the total amount of all farm mortgages re-
corded during the 16 years, 1917-32. Their combined loans constituted 92 per-
cent of the total recordings in 1917 and 89 percent a. late as 1932. From 1917
to 1932, individuals were the largest source of funda for new farm-mortgage




r- .....




2- :, u

loans for every year except 19235 and. during this period accointad for from 27
percent to 63 percent of the total recordings. During the same time, national
and State banks were making from 15 percent to 26 percent and insurance companies.
from 7 percent to 32 percent of the recorded loans. The commercial banks ex- i
ceeded the insurance companies inr importance in s of the 36 yeats"1917-32 and
were exceeded by them during the other years. In 1925'3 the Insurance' cOmpahoes'
accounted for a higher proportion of the amount of-mortgages recorded: thaan A
other lender in Minnesota. After 1932 and to the end of the period, these tree
lenders were of relatively less importance, especially in 1934 when together
they made only 16 percent of the mortgage loans recorded. ':


Table 1.- Amount of farm-mortgage loans recorded by each lending group- ta
Minnesota, as a percentage of total recordings, 1917-35


Year




1917
1918
1919

192C
1921
1922
1923
1925
1325
1926
1927
1929
1929

193C
1931
1932
193
19 3
1935


Individ-
uals

: Percent

47
S 57
: 54 :'

S 63
45
S 32
S 27
S 28
36
S 35


S 50

S 53
54
56
20
10
S 21


i/ Less than


*nt nn
WKnt.i nnnl


* and
State
banks
Percent

25
20
26

19
25
23
21
1S
23
16
15
17
17


:Insurance
: companies

Percent

20
S13
S 7

S13
22
24
32
23
27
S30
30
24
22

15
16
12
4
S 2
8


0.5.


Federal .
-State : Jdat
sand land bank: Joint-
: and and Land stock Others All
* county Bank Comn- land
Agencies, missioner: banks : ,,.
SPercent Percent :Percent :PercentO.Pereent

/ 1 : r 7 : 100
7 3 / 3 100
4I : 5 4 1oo
.1 '4::

1/ 2 1/ 3 100
I3 5 1/ 5 '10L0
I/ 6 11 4 100
3 5 7 5 i00
24 3 5 3 00
5 53 3 100
6 : 1 4 o00
5 6 2 : 1 I00
7I 9 3 :- 0



7 3 1 4 loo
5 : : 1/ 5: 100
S2 1/ 3 100
7 2 : / : 5 100
4 : 4 : : 3 : 100
1 62 : / : 4 : 100
1 : 1 i9 : 100
I/ 56 : 2: 100
7/ : 3 : 1/: 14 : 100


Representatives of individuals, such as administrators, executors, and
guardians, accounted for only a small proportion of the total filings and have
been combined with "individuals" for the purpose of this study. Loans by mutual
savings banks are included in the total loans of national and State banks, as
their amount exceeded 2 percent of the total recordings in only 3 of the 19 years


*
__ __ __ i







AMOUNT OF NEW FARM-MORTGAGE! LOANS IN
MINNESOTA RECORDED EACH YEAR, 1917-35


PERCENT


1917


1919 1921 1923 1925 1927 1929 1931 1933 1935 1937


E OTHERS


I-- JOINT-STOCK LAND BANKS


U.S. DEPARTMENT OF AGRICULTURE


E STATE AND COUNTY AGENCIES

NEG. 34354 BUREAU OF AGRICULTURAL ECONOMICS


FIGURE I.- THE MOST IMPORTANT AGENCIES MAKING FARM-MORTGAGE LOANS IN MINNESOTA
BETWEEN 1917 AND 1932 WEREn INDIVIDUALS, NATIONAL AND STATE BANKS, AND INSURANCE COM-
PANIES. IN 1933 THE FEDERAL LAND BANK AND THE LAND BANK COMMISSIONER RAPIDLY BECAME
THE CHIEF SOURCE OF FARM-LOAN FUNDS. DURING THE PERIOD FROM 1923 TO 1932, STATE AND
COUNTY AGENCIES WERE OF SOME IMPORTANCE AS A SOURCE OF FARM CREDIT IN MINNESOTA, AS
WERE THE JOINT-STOCK LAND BANKS IN 1919, 1922, AND 1923.


80



60



40



20



0




w.


Until 1933 the Federal land bank accounted for not more than 8 percent .
of the mortgages recorded in Minnesota in anyone year. In 1933 new loans of 1
the Federal land bank and the Land Bank Commissioner comprised 62 percent of
the total, having risen from 4 percent for the preceding year. In 1934 their
total rose to 83 percent, the highest percentage recorded by any lending
group in any one year throughout the 19 years. Even in 1955, after the crest
of the refinancing wave had passed, the Federal land bank and the Land Bank
Commissioner were still making 56 percent of the new loans in Minnesota. How-
ever, in many other States, available information indicates that other lenders
were again assuming their former importance as sources of farm-mortgage credit.

Data assembled by the Farm Credit Administration indicate that the in-
creased importance of nonfederal lenders in 1935 was general throughout the
United States and that this trend continued in 1936 and 1937. In October 1933,
the Farm Credit Administration began to gather monthly information about current
recordings of farm mortgages. From time to time, findings have been published
in varying degrees of detail. (See the "Farm Credit Quarterly" for June 1935.)

Of the total amount of all loans made in Minnesota by the Federal land
bank and the Land Bank Commissioner during the 3 years 1933-35, 63 percent was
made by the land bank and 37 percent by the Commissioner, according to a report
of the Farm Credit Administration, February 6, 1937, "Loans closed by years:
Federal land banks, 1917-36; Land Bank Commissioner, May 12, 1933-36."

State and county agencies accounted for a relatively small amount of the
farm-mortgage recordings in Minnesota, ordinarily varying from less than one-
half of 1 percent to 7 percent annually. However, in 1924 this group accounted
for 24 percent of the total loans recorded, exceeding all other lenders except
individuals. The increased activity of this group in that year was primarily
the result of the lending of the newly created Department of Rural Credit of
the State of Minnesota. Other governmental agencies within the State also ap-
peared as mortgagees,but from 1923 to 1932, the Department of Rural Credit was
the predominant lender in this group.

The joint-stock land banks were lenders of some importance in Minnesota
in 1919 Pnd from 1922 to 1928. After 1928 this lending group provided only a very
small part of the funds available for farm loans. The Energency Farm Mortgage
Act of 1933 prohibited the joint-stock land banks from making any farm loans
after May 12, 1933, except such as were necessary and incidental to the re-
financing of existing loans or to the sale of any real estate then owned or
subsequently acquired.

A miscellaneous group of lenders, other th-.n those specifically named,
loaned between 1 and 7 percent of the total amount recorded each year. The
important lenders in this group were agents or representatives of undisclosed
lenders; real estate, mortgage, and finance companies; the Home Owners Loan
Corporation, where the mortgage appeared to cover farm property; religious,
educational, and fraternal organizations; and miscellaneous finns consisting
mainly of local merchants.

In the classification of the mortgages according to type of lender, the
last assignee was treated as the original lender in this study. This procedure








-5 -


gave somewhat different results from those that would have been obtained if
the assignment had been ignored and is most noticeable in relation to mortgagees
that commonly acted as agents for other lenders.

I n the Interpretationof the data on the percentage distribution of
mortgage loans filed by lending groups, .two facts should be considered:- (1)
that the percentages are not a measure of the changes from year to year in the
! volume of mortgages recorded by these lenders, and (2) that they do not measure
the relative importance of lenders'as holders of farm mortgages. To illustrate
the first point, national and State banks made 17 percent of the total amount of
farm mortgages'recorded in the 16 counties in Minnesota in 1928 and 18 percent
in 1931; yet in 1928 the 17 percent represented $2,095,561, whereas in 1931/the
18. percent equalled only $1,475,652. As to the second point, because of the
differences in:average life or duration of loans made by the several agencies,
the amount of loans recorded. annually is not -a good measure of loans in force.
In.its influence on outstanding debt, 10 successive annual recordings of a
$,000-loan, each with a 1-year life, would equal.a single recording of a
$1,000 loan with a 10-year life.


.Average Interest _Eates

Average interest rates on farma mortgages recorded by all lending groups
in Minnesota rose between 1917 and:1921, reaching.a high of 6.5 percent for
the combined average in:the latter -year (table 2). On the whole, the average
rates of all lenders dropped steadily between 1921 and 1935, except for a slight
upturn in 1929-30, From 1925 to 1932 there was very little variation. Then in
1933, largely as a.result of the increased lending activity of the Federal land
bank and the Land Bank Commissioner, the combined average dropped to 5.1 per-
cent, to 5.0 percent in 19.34, and to 4,8-percent If 1935.

In most cases loans by the Federal land bank and,after 1932, by the
Federal land bank and Land Bank Commissioner were made at interest rates lower
than or as low as the average for other lenders. In 6 of the 19 years, insur-
ance companies and State and county agencies loaned at rates lower than the Fed-
eral agencies. The average rates of the insurance companies ranged from 6.3
S percent in 1921 to 5.0 percent in 1935, and those of the State and county
agencies from 6.6 percent to 4.7 percent for the sane years. Of these two grotupp
insurance companies usually loaned at the lower rates. The Department of Rural
Credit, which was the chief lender of the State and county agencies after 1922,
made the majority of their loans at 5.25 percent.

Throughout the 19-year period, national and State banks had the highest
average rates in a majority of the years, ranging from 5.5 percent to 7.4 per-
cent. In 2 years their average rates were exceeded by those of "others" and in
1 year by those of the joint-stock land banks. "Others" loaned at the next high-
est rates, with a maximum average rate of 6.7 percent in 1921. Loans by individ-
uals were at rates which averaged between the high and low averages of the other
lenders and which fluctuated between 4.8 percent and 6.2 percent. The average
rates 6f the joint-stock land banks varied between their usual rates of 5.5 per-
cent and 6.0 percent. The few loans made by the joint-stock land banks after 193.'




r---- '"Rorww


represented the refinancing of existing loans and the. financing.of the sal-!V-7N
acquired real estate. W .


Table 2.- Average rates of interest charged on farm-rmortgage loans recorded
in Minnesota, 1917-35 I/


_ -.1L -" -


Year:
4
S
*


Individ-:
ual a


: Percent

1917: 5.5
1918: 5.b
1919: 5.6
*
1920: 5.6
1921: 6.2
1922: 6.0
1923: 5.9
1924: 5.8
1925: 5.6
1926: 5
1927: 5.4
1928: 5.4
1929: 5.4

1930: 5.4
1931: 5.4
1932: 5.3
1935: 5.1
1934; : .
1935: 4.g


Nationia
and
State
.banks
Percent

6.0
6.3
6.3

6.
7.4
7.0
6.7
6.7
6.3
6.3
6.2
6.1
6.3


6.2
6.2
b. 2
6.2
6.0
5.9
5.5


*S


,t at : Federal :
*1' State : land banks
Insurance and : and Land :
companiess : county : Bank Con-:
__ agencies: issioner:
*- -_~c.LJ1a
: Percent Percent Percent :

5.2 : 6.0 : 5.0 :
5.4 6.0 5.4
S 5.5 : 5.6 : 5.5 :

5* 8 6 565
S 6.3 6.6: 6.0
5.9 6.5 5.7
5.2 : 5.3 : 5.5 :
5.4 5.3 5.4
5.1 : 5.2 : 5.3 :
5.1 5.3 5.0
5.1 : 5.3 : 5.0
5.1 5.3 5.0
5.2 : 5.3 5.0 :

: 5.5 : 5.2 : 5.4 :
5.5 5.3 5.5
5.5 : 5.3 : 5.5 :
5.3 3 .3 5.0
5.3 : 5.0 : 5.0 :
5.0 4.7 .6


Joint- '
stock t
tock Others: A.ll
land :
banks

Percent : Pe recent :Pre


5-.
6.2,
6.3

6.7
6.7
6.
6.2
6.4
6.
6.
5.5
5-9
5.S
6.C


5.5
6.o

6.o
6.o
6.o
6.0
6.0
5.8
5.6
5.6
5.5
5.5

5.5
5.5
5.9
5.6
5.5
5-9
5.6


6.C
5.5
5:<
5.3
5.2


V

S.


I.
S
I.
I^
I:
2
I:
I:
I:

I


5.6
5.7 1
5.S


5.8
5
6.2
5v8
5.7
5.6

5.5
5-4


5.4
5.5

5.6
5.6
5.5
5.1
5.0
4'.g


i/ The average interest rates for certain agencies do not always agree with pub-
lished data. Such differences are likely to be the result of differences in the
items included. For example, the published interest rates of the Federal and
joint-stock land banks are the rates they charged on current "new" loans, whereas
the averages obtained in this study are based on new mortgages both through farm
loan associations and direct, purchase-money mortgages, and sales contracts. An-
other reason for differences is found in changes within a given year in rates
charged on new loans which are not correspondingly reflected in the average
recorded rates.


The varying proportions of first and junior mortgages filed by difference
lenders influenced, to some extent, their average interest rates.


i





7


AVERAGE INTEREST RATES ON NEW FARM-MORTGAGE LOANS
IN MINNESOTA RECORDED EACH YEAR, 1917-35


PERCENT




7


6 _



5 /

Insurance
companies

4
1917 1919 1921
U. S. DEPARTMENT OF AGRICULTURE


1923 1925 1927 1929 1931 1933


1935 1937


NEG.34641 BUREAU OF AGRICULTURAL ECONOMICS


FIGURE 2.- FOLLOWING A RISE FROM 1917 TO 1921, AVERAGE INTEREST RATES CHARGED
ON FARM-MORTGAGE LOANS RECORDED IN MINNESOTA GRADUALLY FELL DURING THE FOLLOWING 14
YEARS, EXCEPT FOR A SLIGHT UPTURN IN 1929-30. NATIONAL AND STATE BANKS .CHARGED THE
HIGHEST RATES DURING PRACTICALLY THE ENTIRE KRIO OF THE STUDY, WHILE THE FEDERAL
AGENCIES AND THE INSURANCE COMPANIES WERE LOANING AT THE LOWEST RATES.



AVERAGE SIZE OFI NEW FARM-MORTGAGE LOANS IN
MIINESOTA RECORDED EACH YEAR. 1917-35


DOLLARS I I I i
Insurance companies




4.000
6,000 MOOa"l e


a ir ,?
i Ilndi(vic

4.000 -ni/ <

-"Oftll-6,-00T,4,
2.000 -
., State and
r* county agencies:

1917 1919 1921 1923 1925 1927


UIS. DEPARTMENT OF AGRICULTURE


1929 '1931 1933 1935


1937
1937


NEC. 34351 BUREAU OF AGRICULTURAL ECONOMICS


FIGURE 3.- THE PEAK FOR THE AVERAGE SIZE OF LOANS OF THE IMPORTANT LENDERS IN
MINNESOTA WAS REACHED IN 1920. FOLLOWING A RATHER RAPID DECLINE, THE AVERAGE SIZE
REMAINED RELATIVELy STABLE FROM 1921 TO 1930 AFTER WHICH THERE WAS A NOTICEABLE BE-
*LI.tE, INSURANCE COMPANIES USUALLY MADE THE LARGEST AVERAGE-SIZED LOANS, AND
NATIONAL AND STATE BANKR AND INDIVIDUALS GENERALLY MADE THE SMALLEST.












Average Size of Loanu


The series for the average size of farm-mortgage loans recorded in i3
Minnesota shows a rapid increase from 1917 to 1920. During this period thne ..
average size of all lenders combined was rising from $3,010 in 1917 to a .,:A
peak of $5,900 in the latter year. Following an abrupt decline in 1921, the, ':.|
combined average remained relatively stable until 1930, although during this'a
period there was a slight increase prior to 1925 and a slight decrease there-'w i-
after. After 1930 the average size dropped rather suddenly to a new low of ... ,
$2,490 in 1932. A noticeable rise is evident during the remainder of the .Aq-
period. All lenders, of course, did not make their maximum or minimum-sized.
loans in the same years. I


Table 3.- Average size of farm-mortgage loans recorded in Minnesota, 1917-35


a
*


a
Individ-
uals
a

Dollars :

3,240 :
3,530 :
4,s10o

6,940
3,s840 :
3,370 :
3,130 :
3,290 :
3,790 :
3,280 :
3,130 :
3,250 :
3,360 :

3,500
2,790 :
2,390 :
2,170
2,400 :
2,510 :


National : State : Federal
a n : land bank:
and Insurance and ,
State companies county and Land:
banks ies: Bank Com-:
banks missioner:
Dollars : Dollars : Dollars : Dollars :

2,150 : 5,950 : 2,500 : 2,230
2,300 : 6,280 : : 4,OJO
3,410 : 7,810 : 960 : 4,020

3,680 : 8,19q0 : 800 : 5,850
2,10 : 6,370 : 1,720 : 5,660 :
2,710 : 6,930 : 4,000 : 5,640
2,580 7,660 : 5,320 5,300
2,560 : 7,9o : 5,110 : 5,740
3,090 : 8,lsO :4,4oo00 5,o4o
2,720 : 7,3140 : 4,o4o : 7,760 :
2,460 : 6,960 : 3,560 6,130
2,570 : 7,050 :4,090 : 5,030 :
2,510 : 6,600 : 3,730 : 5,280

2,670 : 6,310 : 4,61o0 : 4,060 :
2,180 : 4,230 : 3,730 : 3,610 :
2,170 : 6,420 : 2,530 : 3,350 :
2,090 : 6,510 : 2,350 : 2,820
1,780 : 5,830 : 1,700 : 3,060
2,430 : 6,530 3,120 : 3,210


Joint-
S


stock
land
banks
Dollars :D


8,000 :
8,730 :

9,730 :
5,500 :
9,160 :
7,800 :
7,220 :
5,940 :
8,60
6,760 o
4,54o
2,230

2,630
3,150 :
3,420
,920
,000
3,460


others


dollars: Dollan

2,110 : 3,OJQ
2,520 : 3,350
3,190 4,410


3,980
2,970
2,750
2,850
2,240
2,280
2,1470
1,460
2,250
2,000

1,850
1,560
1,190
3,270
1,630
2,190


5,900
3,790
3,960
3. 99(i
4,01J
4,220
49040
3j63'
3,570
3,510

3,470
2,810
2,490
2,650
2,900
3,010


Year:
a
a


1917:
1918:
1919:

1920:
1921:
1922:
1923:
1921.4
1925:
1926:
1927:
1928:
1929:
*








1330
1931:
1932:
193 1.
193:
1935:
1


Insurance companies made the largest loans during most of the period, be-
:eeded only by joint-stock land banks in some of the earlier years. The
size of insurance company loans varied from year to year between $4,230
190. Joint-stock land bank loans, which were next largest in size,showed


a


ing exc
average
and $8,


*


i::!
*:li








-9-


Considerable variation, ranging from $9,730 in 1920 to $2,230 in 1929. The
Smallest average-sized loans were usually made by "others", especially during
the latter half of the 13 years. Their averages exceeded $3,000 in only 3 years.
During the early part of the period, loans of State and county agencies and
national and State banks averaged lower than those of "others". Of the more
important lenders, national and State banks were making loans of the smallest
average size. Their loans usually ranged between $2,000 and $3,000, exceeding
the latter figure in only 3 years. Prior to 1922 the loans of the State and
county agencies showed considerable variation, chiefly as a result of the small
number of miscellaneous loans made by various governmental units. After the
Department of Rural Credit came into existence in 1923, however, the size of the
loans of this group fluctuated between the high and the low averages of the other
lenders. This was likewise true of individuals and the Federal agencies. The
Federal land bank made its largest average-sized loan of $7,760 in 1926.

In 1933-35 when the Federal land bank, together with the Land Bank Com-
missioner, was the largest source of new farm-mortgage loans in Minnesota, the
average-sized loan of these two agencies was $2,820 in 1933, $3,060 in 1934, and
$3,210 in 1935. The average size of Federal land bank loans in these 3 years
was $3,977, and the average size of Land Bank Commissioner loans, $2,121, ac-
cording to a report of the Farm Credit Admninistration. Since many of the Land
Bank Commissioner loans were second-mortgage loans made jointly with Federal
land bank loans, the average combined loan received by borrowers in those 3
years actually may have been larger than the average Federal land bank loan in
earlier years.

All of the averages presented in this report are based on first mortgages
and junior mortgages, The proportions of junior mortgages to first mortgages
differed for various lenders at any one time rnd from year to year. These
variations affect the averages and must be taken into consideration when using
the data. The presence of extreme items unduly influenced the averages in some
years when the total number and amount of mortgages for certain lenders were
relatively small.





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