Extra census bulletin

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Apr. 1^92-
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Extra Census Bulletin.

No. 52. V^^ASHINGTON, D. C. August 16, 1893.

STATISTICS OF FARMS, HOMES, AND MORTGAGES.

OWNERSHIP AND DEBT IN MINNESOTA.

DEPARTMENT OF THE INTERIOR,

Census Office,
Washington, D. C, August 8, 1893.
Sir :

The leading results of the investigation of farm and home proprietorship in Minnesota are contained in this
bulletin. In regard to farms, the conclusion is that 15.25 per cent of the fai-m families hire and 84.75 per cent own
the farms cultivated by them; that 46.-39 per cent of the farm owning families own subject to incumbrance and
53.61 per cent own free of incumbrance. Among 100 farm families, 15 hire their farms, 39 own with incumbrance,
and 46 without incumbrance. On the owned farms there are liens amounting to $37,709,574, which is 31.61 per
cent of their value, and this debt bears interest at the average rate of 8.18 per cent, making the average annual
interest charge $67 to each famil3^ Each owned and incumbered farm, on the average, is worth $2,574, and is
subject to a debt of $814.

The corresponding facts for homes are that 53.01 per cent of the home families hire and 46.99 per cent own
their homes; that of the home owning families 63.94 per cent own free of incumbrance and 36.06 per cent with
incumbrance. In 100 home families, on the average, 53 hire their homes, 17 own with incumbrance, and 30
without incumbrance. The debt on owned homes aggregates $27,953,413, or 34.36 per cent of their value, and bears
interest at the average rate of 7.42 per cent, so that the annual amount of interest to each home averages $94. An
average debt of $1,268 incumbers each home, which has the average value of $3,692.

Thei-e are 4 cities in the state in the class of those having a population of 8,000 to 100,000, and in these
cities 51.46 per cent of the home families hire and 48.54 per cent own their homes, and of the home owning families
28.61 per cent own with incumbrance and 71.39 per cent own free of incumbrance. In 100 home families, on the
average, are found 51 that hire their homes, 14 that own with incumbrance, and 35 that own without incumbrance.
The liens on the owned homes are 29.82 per cent of the value of those subject to lien. Several averages show
that the rate of interest is 7.55 per cent ; value of each owned and incumbered home, $3,634 ; lien on the same,
$1,084, and yearly interest charge on each home, $82.

In Minneapolis and St. Paul, which are the only cities in the state having a population of more than 100,000,
64.89 per cent of the home families hire and 35.11 per cent own their homes; 52.43 per cent of the home owning
families have incumbrance on their homes, and 47.57 per cent own and occupj' homes free of incumbrance. Among
100 families, on the average, 65 hire, 18 own with incumbrance, and 17 without incumbrance. Averages for each
owned and incumbered home: incumbrance, $1,861; value, $5,232; interest charge for one year, $133; rate of
interest, 7.16 per cent. Homes are incumbered for 35.57 per cent of their value.

Real estate purchase and improvements, w^hen not associated wdth other objects, caused 65.99 per cent of the
farm families to incur 68.11 per cent of the farm debt and 82.07 per cent of the home families to incur 81.70 per
cent of the home debt.

Very respectfullj',

JAMES H. WARDLE,

Aetiny Superintendent of Census.

The Secretary op the Interior.

C. O. p.— 3,500

Digitized by the Internet Archive

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STATISTICS OF FARMS, HOMES, AND MORTGAGES.

OWNERSHIP AND DEBT IN MINNESOTA.

BY GEORGE K. HOLMES AND JOHN S. LOED.

Selections from the results of the investigation of farm and home jiroprietorship and indebtedness in Minnesota
are presented in this bulletin. Every family is regarded as occupying a farm or a home not on a farm, and as
hiring such farm or home, or owning it free of incumbrance, or owning it subject to incumbrance. In the class last
named, and in no other, account has been taken of the incumbrance, its rate of interest and o):>ject, and the value of
the farm or home.

Habitation proprietorship. — Among the 247,975 families of the state there are 86,944, or 35.00 per cent of
the total, which hire their farms and homes, and 161,031, or 64.94 per cent, which own them. Of the families which
own, 68,385, or 42.47 per cent, have farm or home incumbrance, and 92,646, or 67.53 per cent, are free of incumbrance.
In 100 families, on the average, 35.06 hire their farms or homes, 27.58 own with incumbrance, and 37.36 own
without incumbrance.

Farm propeietgeship. — There are 117,893 farm families, which ai*e 47.54 per cent of the total number of
families'. Of these, 99,911, or 84.75 per cent, own and 17,982, or 15.25 per cent, hire the farms cultivated by them,
while of the owning families 46,347, or 46.39 per cent, have incumbrances on their farms and 53,564, or 53.61 per
cent, have no incumbrances. The average 100 farm families are composed of 15.25 that hire, 39.31 that own with
incumbrance, and 45.44 that own without incumbrance.

In 1880, 9.15 per cent of the farms were hired, so that there is an apparent relative increase of farm tenancy
during the decade; but the sources of the statistics for 1880 and 1890 are not the same, since the figures for 1880
represent farms and those for 1890 farm families, and this may somewhat affect the comparison.

Home peoprietorship. — The 130,082 home families are 52.46 per cent of the families of the state, and are
divided into the several classes as follows: hiring families, 68,962, or 53.01 per cent of the total number of home
families; owning families, 61,120, or 46.99 per cent; families owning free of incumbrance, 39,082, or 63.94 per cent
of the total number owning; families owning subject to incumbrance, 22,038, or 36.06 per cent of the owning
families. Of 100 home families, on the average, 53.01 hire their homes, 16.94 own with incumbrance, and 30.05 own
without incumbrance.

City homes are hired in a greater degree than is found outside of cities. In the 4 cities of the state having
a population of 8,000 to 100,000 there are 12,321 home families, of which 6,341, or 51.46 per cent, hire and 5,980,
or 48.54 per cent, own their homes. Homes subject to incumbrance are occupied by 1,711 owning families, or
28.61 per cent of the total owning families, and 4,269 families, or 71.39 per cent of the owning families, have no
home incumbrance. In 100 of these city home families, on the average, 51.46 hire their homes, 13.89 own with
incumbrance, and 34.65 own without incumbrance. In Duluth 63.93 per cent of the home families hire their homes,
and this is the largest percentage found among the 4 cities. Stillwater comes next, with 48.21 per cent. The
smallest percentage is 38.33 for Mankato, and next to this is 43.23 for Winona.

Minneapolis has a population of 164,738, and St. Paul of 133,156, and these are the only cities having a
population greater than 100,000. Of the 32,750 home families of Minneapolis, 22,-552, or 68.86 per cent, hire
their homes and 10,198, or 31.14 per cent, own their homes. Of the owning families, 4,715, or 46.23 per cent, have
no incumbrance on their homes and 5,483, or 53.77 per cent, own subject to incumbrance. Among 100 families, on
the average, 68.86 hire their homes, 14.40 own free of incumbrance, and 16.74 own with incumbrance. The smallest
degree of home owning is found in ward 5, where 21.94 families in 100 own their homes, and the highest is found
in ward 12, where the owning families are 55.85 in 100.

In St. Paul 15,328 of the 25,630 home families, or 59.80 per cent, hire their homes, and 10,302, or 40.20 per
cent, own their homes. Of the owning families, 5,037, or 48.89 per cent, have no incumbrance on their homes, and
5,265, or 51.11 per cent, own subject to incumbrance. Among 100 families, on the average, 59.80 hire their homes,
19.66 own free of incumbrance, and 20.54 own with incumbrance. The smallest degree of home owning is found in
ward 4, where 12.56 families in 100 own their homes, and the highest is found in ward 11, where the owning
families are 57.33 in 100.

a-2—-?. ' 3

FARMS, HOMES, AND MORTGAGES.

In the state outside of the 6 cities referred to, 41.66 per cent of the home families hire and 58.34 per cent own
their homes, 27.65 per cent of the home owning families own with incumbrance and 72.35 per cent without
incumbrance, while among 100 home families, on the average, 41.66 hire their homes, 16.13 own subject to
incumbrance, and 42.21 own free of incumbrance.

Value and incumbrance. — Liens amounting to $65,662,987 incumber the 68,385 owned farms and homes of
the state that are subject to incumbrance, ^37, 709,574 of which is on 46,347 farms and $27,953,413 on 22,038 homes.
The value of the incumbered farms and homes is $200,647,232; farms, $119,290,539 ; homes, $81,356,693. Ratios of
debt to value : farms and homes, 32.73 per cent; farms, 31.61 per cent ; homes, 34.36 per cent.

A debt of $1,854,397 incumbers 1,711 owned homes of the 4 cities containing a population of 8,000 to 100,000,
and these incumbered homes are worth $6,217,799, so that the debt is 29.82 per cent of the value. The 5,483
owned and incumbered homes of Minneapolis are worth $28,689,073, and are incumbered with a debt of $10,275,607,
or to the extent of 35.82 per cent of their value. In St. Paul the homes of this class are worth $27,548,704, the
incumbrance on them is $9,725,410, which is 35.30 per cent of their value. The debt incumbering the owned
homes in the state outside of the 6 cities is 32.26 per cent of the value of the homes subject to the incumbrance.

Average values and incumbrances. — The average owned and incumbered farm of the state is worth $2,574 ;
home $3,692 ; of each home in the 4 cities. $3,634 ; of each home in Minneapolis, $5,232; in St. Paul, $5,232.

The averao-e farm incumbrance for the state is $814; home, $1,268 ; home incumbrance in the 4 cities, $1,084 ;
in Minneapolis, $1,874; in St. Paul, $1,847.

St. Louis county has homes of the highest average value, namely, $5,327, and the least average value, $503, is
in Itasca countj'. In the state outside of the 6 cities the average home value is $1,973; incumbrance, $637. As
before stated, all values are confined to incumbered farms and homes occupied by owners.

Interest rates. — The principal rate of interest in this state is 8 per cent. This rate is paid on 31.49 per cent
of the farm incumbrance by 29.79 per cent of the farm debtor families ; on 34.16 per cent of the home incumbrance
by 45.63 per cent of the home debtor families; in the 4 cities on 43.66 per cent of the home incumbrance by 58.09
■per cent of the families occupying owned and incumbered homes; in Minneapolis and St. Paul on 31.99 per cent of
the home debt by 52.14 per cent of the home debtor families. These percentages are contained in the following
table, and the facts from which they w^ere computed are exhibited iu Table 3 :

PERCENTAGE OF FAMILIES OCCUPYING OWNED AND INCUMBERED FARMS AND HOMES AND AMOUNT OF
INCUMBRANCE THEREON, BY RATES OF INTEREST.

PATES OF INTE

THE STATE.

For number
of families.

Under 6 per cent

6 per cent

7 per cent

8 per cent

6 to 8 per cent, inclusive-
Over 6 per cent

Over 8 per cent

Over 10 per cent

Over 12 per cent

3.27
2.67
15.99
29.79
52.19
94.06
44.51
1.37
0.59

For
amount.

2.72
3.48
19.33
31.49
61.07
93.80
36.21
1.47
0.58

For number
of families.

7.59
19.97
45.63
77.18
91.41
21.82
0.89
0.32

0.79
16.79
26.17
34.16
89.20
82.42
10.01
0.50
0.21

FOB HOMES IN CITIES

OF 8,000 TO 100,000

PEOPLE.

For
amount.

FOR HOMES IN

MINNEAPOLIS AND

ST. PAUL.

0.58
6.02
16.72
58.09
83.40
93.40
16.02
0.82

0.26
11.33
25.91
43.66
90.43
88.41
9.31
0.45
0.26

0.56
10.51

25.88
52.14
94.74
88,93
4.70
0.60
0.22

0.59
20.81
29.03
31.99
96.67
78.60

2.74

Rates that are less than the principal state rate of 8 per cent are paid by 25.67 per cent of the farm debtor
families on 32.30 per cent of the farm debt, by 32.55 per cent of the home debtor families on 55.83 per cent of the
home debt; in the 4 cities by 25.89 per cent of the home debtor families on 47.03 per cent of the home debt, and in
Minneapolis and St. Paul by 43.16 per cent of the home debtor families on 65.27 per cent of the home debt.

Iu the state, rates higher than 8 per cent are paid by 44.54 per cent of the farm debtor families on 36.21 per
cent of the farm debt, by 21.82 per cent of the home debtor families on 10.01 per cent of the home debt; in the
4 cities by 16.02 per cent of the home debtor families on 9.31 per cent of the home debt, and in St. Paul and
Minneapolis by 4.70 per cent of the home debtor families on 2.74 per cent of the home debt.

The highest rate reported is 50 per cent, which is paid by 1 home family on a debt of $500.

The legislature of Minnesota has limited the rate of interest as follows in the years named: 1851, no limit;
1858, 15 per cent for banks on secured loans; 1860, 12 per cent; 1879, 10 per cent, but no limit for building and
loan associations.

OWNERSHIP AND DEBT IN MINNESOTA. 5

Interest charge and average rates of interest. — The total intei-est charge for 1 year ou the debt
iucumbering the owned farms of the state is $3,085,913, on the homes, $2,074,436 ; total, $5,160,349.

The average interest charge for 1 year on each farm is $67 ; home, $94 ; on each home in the 4 cities, $82 ;
on each home in Minneapolis and St. Paul, $133.

On farm loans the average rate of interest is 8.18 per cent ; on home loans, 7.42 per cent ; on home loans in the
4 cities, 7.55 per cent; on home loans in Minneapolis and St. Paul, 7.16 per cent. Hence, the average annual
interest value of each owned and incumbered farm in this state is $211 ; of each home, $274 ; of each home in the
4 cities, $274 ; of each home in Minneapolis and St. Paul, $375. Outside of the 6 cities the average annual interest
charge on each home is S52 ; average i-ate, 8.24 per cent ; average annual interest value, $163.

Objects of indebtedness. — Investigation of the reasons why farm and home indebtedness was incurred
discloses the fact that 65.99 per cent of the farm debtor families of the state incurred 68.11 per cent of the farm
debt for the purpose of buying real estate and making real estate improvements, when these objects were not
associated with other objects, and that for the same objects, in the case of homes, 82.07 per cent of the home
debtor families incurred 81.70 per cent of the home debt; in the 4 cities that 83.34 per cent of the home debtor
families incurred 86.97 per cent of the home debt, and in Minneapolis and St. Paul that 85.88 per cent of the home
debtor families incurr-ed 83.43 per cent of the home debt.

The objects of real estate purchase and improvements, business, and the purchase of personal propertj^, when
not complicated with other objects, led 78.64 per cent of the farm debtor families of the state to incur 79.86 per
cent of the farm debt, 91.04 per cent of the home debtor families to incur 92.23 per cent of the home debt, 90.88
per cent of the home debtor families in the 4 cities to incur 95.25 per cent of the home debt, and 93.31 per cent of
the home debtor families in Minneapolis and St. Paul to incur 92.71 per cent of the home debt.

Farm and family expenses, standing alone, are represented by 6.16 per cent of the farm debtor families of the
state and 4.09 per cent of the farm debt; family expenses by 3.92 per cent of the home debtor families and 1.87
per cent of the home debt; family expenses in the 4 cities by 5.09 per cent of the home debtor families and
1.78 per cent of the home debt, and in Minneapolis and St. Paul by 2.24 per cent of the home debtor families
and 1.38 per cent of the home debt.

Table 1.— NUMBER AND PERCENTAGE OF FAMILIES OCCUPYING OWNED AND HIRED AND FREE AND INCUMBERED

FARMS AND HOMES.

CIVIL DIVISIONS.

Aggregate.

OWNING.

Hiring.

PERCENTAGE OF FAM-
ILIES OWNING AND
HIRING.

PERCENTAGE OF FAM-
ILIES OWNING PBEE
AND INCUMBKRKD OF
TOTAL OWNING
FAMILIES.

PERCENTAGE OF FAM-
ILIES OWNING FREE

AND INCUMBERED OF
TOTAL OWNING AND
HIRING FAMILIES.

Total.

Free.

Incum-
bered.

Owning.

Hiring.

Free.

Incum-
bered.

Free.

Incum-
bered.

247,975

161,031

92,646

63,385

86,944

64.94

35.06

57.53

42.47

37.36

27.58

117,893
130,082

99,911
61,120

53,564
39,082

46,347
22,038

17,982
68,962

37,880

84.75
46.99

35.11

15.25
53.01

64.89

53.61
63.94

47.57

46.39
36.06

52.43

45.44
30.05

16.70

39.31
16.94

58,380

20,500

9,752

10,748

Minneapolis and St. Paul (for
liomes.)

18.41

Minneapolis, Hennepin county..

32,750
25,630

10,198
10,302

4,715
5,037

5,483
5,265

1,711

22,552
15,328

6,341

31.14
40.20

68.86
59.80

46.23
48.89

53.77
51.11

14.40
19.66

16.74
20.54

12,321

5,980

4,269

48.54

51.46

71.39

28.61

34.65

13.89

4,818
1,753
2,070
3,680

1,738
1,081
1,072
2,089

1,104
845
874

1,446

634
236
198
643

3,080
672
998

1,591

36.07
61.67
51.79
56.77

63.93
38.33
48.21
43.23

63.52
78.17
81.53
69.22

36.48
21.83
18.47
30.78

22.91
48.21
42.22
39.30

13.16
13.46
9.57
17.47

Mankato, Blue Earth county

Stillwater, Washington county.

59,381

34,640

25,061

9,579

24,741

58.34

41.66

72.35

27.65

42.21

16.13

FARMS, HOMES, AND MORTGAGES.

Table 3.— VALUE OF FARMS AND HOMES OCCUPIED BY OWNERS AND INCUMBERED
AND AMOUNT AND PERCENTAGE OF INCUMBRANCE THEREON.

CIVIL DIVISIONS.

Number
of families

with'hf- ' Value,
brance.

Incumbrance.

Percent-
age of

brance of
value.

68,38S

$200,647,232

865,662,987

32.73

46,347

119 290 539

37 709.B74

31.61
34.. 36

For homes

22.038 8l,3.')6,693 i 27.953,413

Minneapolis and St. Paul (for homes)

Minneapolis, Hennepin county

St. Paul, Ramsey county

Four cities (for homes)

Duluth, St. Louis county

10,748 j 86,237,777 20,001,017

35.57

5,483
5,265

28,689,073 10,275,607
27,548,704 9,725,410

35. b2
35.30

1,711

6,217,799 1 1,854,397

29.82

29.06 "
24.57
34.64
33.04

634
236

3,905,938
606 362

1,1,35,046
149,009

198
643

426,264
1,279.235

147,672
422,670

9,579

18,901,117

6,097,999 32.26

OWNERSHIP AND DEBT IN MINNESOTA.

Tahle 3.— SUMMAKY of NUMBER OF FAMILIES OCCUPYING OWNED AND INCUM]'.EKED FAKMS AND HOMES AND
AMOUNT OF THE INCUMBRANCE THEREON, BY RATES OF INTEREST.

[Knles of interest represented by mixed numbers are combined into groups; jbr instance, rates represented by " 1-2" per cent include all rates greater llian 1 pi

cent and less than 2 per cent.]

THE STATE.

RATES OP INTEREST.

FOR HOMES IN
CITIES OF 8,000 TO
100,000 PEOPLE.

Incum-
brance.

939
210,119
113,547
480,561
63,269
809,540
15,830
50,320
12,428
85,784
650

1,000
1,870

FOR HOMES IN

MINNEAPOLIS AND

ST. PAUL.

Incum-
brance.

3,081

3,000

34,499

64,242

4,162,353

1,737,545

5,806,062

1,230,826

6,398,287

156,266

138,197

15,168

174,071

2,442

2.800
25,722
17,660

2,500

FARMS, HOMES, AND MORTGAGES.

Table 4.— AMOUNT OF ANNUAL INTEREST CHARGE AND AVERAGE VALUE, INCUM-
BRANCE, ANNUAL INTEREST CHARGE, AND ANNUAL RATE OF INTEREST FOR
FARMS AND HOMES OCCUPIED BY OWNERS AND INCUMBERED.

Average
value of
each in-
civiL DIVISIONS. cumbered
farm or
home.

Averafje

brance on
each farm
or home.

Average

™ , , annual in-
Total an- : ^^^^^

nual inter- ^^ „„

est charge, ^.^ch farm

or home.

Average
annual
rate of j
interest, i

S2,934

S960

$.5,160,349 $75

7.86

2,. 574
3,692

814
1,268

3,085,913
2,074,436

67
94

8.18
7.42

Minneapolis and St. Paul (for homes)

Minneapolis, Hennepin county

St. Paul, Eamsey county

Four cities (for homes)

Duluth, St. Louis county

5,232

1,861

1,431,933

133

7.16

5,232
5,232

1,874
1,847

738,102
693,831

135
132

7.18
7.13

3,634

1,084

140,058 82

7.55

6,161
2 569.

1,790
631

83,386 1 132
11,793 50
12,174 61
32,700 51

7.35
7.92
8.24

7.74

Stillwater, Wa,shington county

2,153 746

1,973

637

502,445

52

8.24