The Ward County independent. [volume] (Minot, Ward County, N.D.) 1902-1965, 1914-05-21
GOVERNOR HANNA AND
Low INTEREST plan

lUW INI1k[Si PLAN
NORTH DAKOTA's CHIEF EXECU-
TIVE HAS FEASABLE' PLAN
THAT HE is GOING TO TRY TO
WORK OUT-WILL MEAN FARM
LOANS AT s PER CENT.
The following answer of Governor
Hanna's to question put him by the
Searchlight makes interesting read
ing, and especially so to the farmers
Of this state and this section.
The question of low rate of interest
on farm loans is an exceedingly impor-
tant one. Gov. Hanna's discussion of
this question evidences his intelligent
grasp of the subject and his ability,
not only to recognize the need, but al
so plan practical and quick remedy.
As a matter of fact the money accru-
ing as the result of the sale of Sec
ti0ns 16 and 36 in this state, is the
money Of the people, and it should be
made, as far as possible, to help aid
both the educational and agricultural
interests of this state. The Indepen-
dent is very much of the opinion if
$2O,O0O,OOO to $50, 100000 of this fund
could be devoted solely to loans on the
farms of the state at 5 per cent, the
mortgage period running ten years, it
would largely solve the question Of
low rates of interest on farm loans,
and lift big load from thousands of
farmers now struggling with the
weight of excessive interest rates.
There has been some objection to
this method as outlined by Governor
Hanna, based solely upon the PROPOSE
ton that there would not be enough to
20 around. This argument is a falac-
ious one, and will not stand the test of
intelligent investigation. To illustrate,
II years. ago the farmers of this state
were at the mercy of the twine inter-
ests, therefore it followed that each
successive year found the state press
filled with articles announcing twlne
shortage, because of reported failure
in sisal and manila crop, etc. The re-
suit inevitably was, that twine sold
anywhere from tic 24c per pound,
and the jobbing interests reaped big
chunks Of money as the result Of these
excessive prices. The State .penitentl-
ary at that period had anywhere from
$50 to 200 convicts and practically
without employment of any character
or kind. A bill was introduced in the
legislature for the purpose OF install
ing twine plant at the penitentiary
and put the convicts to work, first, for
the good of the convicts themselves,
and second, to lower, if possible, the
price of twine. Every twine plant
in the country fought that measure
and were aided very materially by the
numerous local twine dealers in every
village and city in the state. The ar
pument was made that the amount Of
twine that could be made at the peni-
tentiary would not be drop in the
bucket as against the great amount
annually used in the state. The friends
of the measure pointed out, however,
that while the penitentiary would not
make, at the start, more than one
tenth of the twine needed, yet that
one-tenth woud in large measure
fix the price of all twine sold in the
state. The bill became law, the
twine plant has been in operation flf-
teen years and from that date to
this, it has very largely fixed the price
of all twine sold and has saved the
farmers of this state several million
dollars. What penitentiary twine!
made in North Dakota, accomplished
in the way of lowering prices, $40, ,OO0,-
900 to $3O,OOO,00O of school funds,
loaned at low rates of interest. will ac-
complish by promptly bringing low
rates of interest on the farms.
We believe Governor Hanna is ab.
solutely right in his state plan to aid
and bring about at an early date, low
rates Of interest on farm loans and
which. for our section, at least, is the
most pressing problem Of the hour.
We append herewith Governor Han
mas reply to the Searchlight. Every
farmer should read it carefully.
"I recommended to the legislature
last winter that we should send q cou-
ple of men abroad to study the ques:
ton of farm credits and farm land
banks on the other side of the water
in Europe, but the legislature did not
appropriate the money necessary. The
Federal Government this year may
pass q law for the organization OF
farm land banks, which would be .
great help. 4 believe, however, that
the best proposition for the farmers is
this: Nineteen years ago introduc,
ed in the state legislature the first bill
for the lending Of the school funds Of
the state upon farm mortgages. The
bill did not pass at this session OF the
legislature, but it did pass two years
later. We have today Of school funds
loaned as follows: About two mil
4 lions loaned on mortgages on the farm
lands of the state at five per cent
and about seven millions in bonds
such as state, school, city and county
There are about twelve millions due
4 the state on contracts for land sold
and as the money is paid in on the
contracts that money becomes avail.
able for loaning. Eighty per cent OF
the farm loans made by the state in
North Dakota are on lands outside
of the Red River valley. The average
amount loaned on quarter is 81 ,148..
so and the first Of January, 1914, the
state had 1922 loans. My idea is this
that if we have fair crop in North
Dakota this year, to have a big school