The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-09-26
NORTH DAKOTA
RICH SCHOOL FUND.
Cash Enough in It to Take Up the
States Entire Bonded In
debtedness.
Outstanding Bonds Will Be Taken
When They Return Fair
Rate Of Interest.
Special to The Journal.

Special to The Journal.
Bismarck, N. D., Sept. 26-The state
has an embarrassment of riches in its
permanent school fund, and in an effort
to find investment for it is trafficking
for the purchase Of its own obligations s
There is total Of 100000 to 500, 900
In the permanent school fund. The law
provides that this can only be invested
IN bonds Of the United States, bonds of
the state of North Dakota, bonds of school
districts and loans in first mortgages on
farm lands
The failure Of the $3.50, 900 Of institu-
ton bonds leaves the state board Of uni
versity and school lands with the task Of
investing this money to return interest
to the school fund, which is periodically
apportioned to the. school districts Of the
state. There are not nearly enough
school bonds offered to take up the nat
ural increase Of the fund and few appli-
cations are made for farm land loans.
Bonds Of the United States are out Of
the question and the only resource is to
buy up the outstanding bonds of the state
Of North Dakota, If they can be obtained
on such terms as will return a fair rate
Of interest. A total of $4,000 Of state
bonds held by Farson & Leech Of Chicago
have been bought on such terms as will
return about S1s per cent to the fund.
One Offer Refused.
George e. Nichols, former state treas
urer, offered additional $15o, 900 at a
price that would return about 3 per cent,
but the board refused to buy them at
the figure offered. Another $4,000 has
been offered to return a little more than
31a per cent and the board has tel
egraphed an acceptance Of the offer. It
Is expected that more bonds may be
bought. There is enough money in the
fund to take up the entire outstanding
bonded indebtedness Of the state if it
could be bought to return a sufficient
interest.
The board is also negotiating with c. G.
Gowran Of Grand Forks for the purchase
of the school district bonds that were
purchased in the early days of statehood
thru F. R.. Fulton and Gowran. They
have negotiated nearly all the school dis
trict bonds that are not held by the state
and It is expected that, some Of them
may be purchased.
The board at Its meeting to-day pur-
chased all the school district bonds that
were offered, but the total amount was
only $4,000.
spaIdings Amendment.
An effort will be made to get President
Hill Of the Great Northern road to attend
the forthcoming irrigation congress Of
North Dakota citizens. 1t is believed
| that the presence of President Hill would
attract large numbers.
| Another point that has been brought
out Is that Congressman Spalding of
Fargo will offer at the coming session of
| congress an amendment to the irriga-.
! ton law, providing that in states where
| the entire fund is not used for irriga-
! ton part Of 1t may be expended in the
drainage Of lands which are frequently
| inundated.
Such provision would be of vast i'm:
| portance to the Red River Valley where
there is an annual loss of possibly mill
| ions of dollars because of floods of the
! loWlands.