Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1912-06-22
north DAKOTA STATE FINANCES

poses to mills. 1t further provides
a separate levy may be made to pro.
vide funds for the payment Of the
interest on the public debt. men,
ton this because in 1897 the legsla
ture passed law providing a special
tax. to provide for the payment of a
wolf bounty. In 1901 the legislature
passed law providing one mill
tax to be levied on all property the
proceeds of which were to be distrb.
uted to certain institutions as an aid
in maintenance.
The wolf bounty and one mill tax
have been in force ever since and
are at this time, with the exception
that the levy for wolf bounty was
decreased by the last legislature af-
ter it was found that is was build
ing large surplus fund. The legis.
lature in 1911 added two special tax
levies to those mentioned before. one
to provide money to pay for the des-
truction of horses affected with CLAN
ders. and another to provide money
for the payment of tubercular cattle.
The special tax should be abolish
ed. First because all of the pur-
poses for which special levies are
now made, are properly genera! ex-
penses of the state and should be
paid out Of the general fund by the
authority Of appropriations made by
the legislature. Second, for the
reason that once a special levy is
made it must always be carried
Third. for the reason that the total
state levy is in excess of the limit
prescribed by the constitution.
Fourth, because the special levy for
! special purposes is not economical
The permanent funds, and the in
terest and income funds, of the COM
mon schools and the state institu.
tons, are the state funds which are
of direct benefit to more people than
any other fund controlled by the
state. When North Dakota became
state the United States govern
ment endowed our common schools
with nearly two and one half million
acres and the state institutions with
about 10000 acres of land. BY "com.
mon schools is meant all city and
district schools other than state in
situations. The Estate Institutions
referred to will mean the Agricultural
College. State University, Reform
school. Normal Schools, etc. 1t is
true that all of our institutions did
not receive land grants, but most of
them did. The Permanent Fund
to which will refer, is the fund Gre
ated from the principal received from
the sale of this land.
The Interest & Loan Fund" of
either the common schools or the
state institutions, is the earnings of
the permanent fund. The interest
and income fund may be used for the
maintenance only of our state insti-
buttons and schools.
The "Permanent Fund is invested
in this state in per cent first mort
gage loans on North Dakota i'm
proved farms, and 4 per cent bonds
of our school districts, cities and
towns.
The total acreage of all land
grants is 3,120,941 acres. $21,0OO,-
10000 worth of lands have been sold,
Of which about $4,000 10000 is
deferred payments on contracts bear.
ing per cent interest. The 1,691,619
acres of land still remaining will be
sold In time, and when the sales are
completed and the contracts paid up
the permanent fund of our common
schools and state institutions viii
amount to at least $4,000, 100000.
We hold 1850 farm mortgages
with total value of 81 $50, 100000,
the average amount secured by
mortgage is $1,675.OO. The average
amount loaned per acre is $3.50,
while it is safe to estimate that the
land upon which loans are made is
from $500 to $4,000 per acre. Loans
are made only to actual residents of
the state, on improved land, with
limit of one-third of the appraised
value, and in no case more than 3d.
O0OW to any one borrower. All
loans are made for twelve years. but
can be paid in full after three years
by paying the principal and interest
together with six months additional
Interest. After five years the mort
gage may be paid in full. or in any
multiple of 10 per cent of the loan
The loans are made on only perfect
title and the state has had occasion
to forclose but one loan. in which
instance the land was sold on con-
tract at a fine profit to the state.
Tho normonont funds ;ov,octo1
In bonds purchased at par. bearing
per cent interest, directly from the
school district, municipal corpora
ton. or city Offering for sale such
bonds.
During 1911 the sum of $4S3, O53.87
WAS Invested in bonds Khila only