The Ward County independent. [volume] (Minot, Ward County, N.D.) 1902-1965, 1915-01-21

guarantee and reserve fund, the loan
retained would mature according to
the desire of the borrower on the
above basis of annual payments. 1t
will be seen that if the loan was for Is
years the borrower would be paying
total of only 6 1-2 per cent annu-
ally, as follows: 4.3 per cent inter-
est, 1-2 of I per cent reserve, IL on
the principal. Or, if for 80 years, then
a total of SO annually. The borrower
should have the privilege at any annu-
al period of retiring any additional
part of the loan he desires and the in
terest should stop at that period.
Guarantee Farm Loan Fund.
The state shall appropriate from
any funds in the state treasury not
otherwise appropriated, and deposit in
trust, the sum of one hundred thous-
and dollars, for the purpose Of guar
anteeing the first issue Of bonds, and
said sum should remain in the general
fund intact, and interest thereon &C
crue to the state until such time as
the legislature may decide that the
same is no longer necessary as guar
antee. The bureau shall issue bonds
in denominations of fifty, one hundred,
five hundred and one thousand dol
lars, and they shall first be offered to
the Board of University and School
lands, and, second, to residents of the
State of North Dakota.
The subsequent issue of bonds shall
be secured by first mortgage real es-
tate loans in sums of not less than
five hundred dollars or more than five
thousand dollars each, and shall be on
deposit in the State Examiners office.
1t is the intention of this plan to
utilize the state officials now provid-
ed for, thus making the expense
mere trif1e This would mean that all
of the present state machinery, such
as states attorneys for attending to
matters of title, foreclosures, ETC., and
the attorney generals office would be
at the disposal of the Bureau; and it
would not be necessary to pay addit-
ional for such services.
The objects sought and gained are:
(a) To secure for the agricultural
classes money on long time at low
rates of interest, to be repaid in small,
partial, annual payments from their
profits and not from their capital
(amortization).
(b) Economical administration by
utilizing state machinery now in exis-
tence, thus avoiding all overhead ex-
penses. State management, thus sur
rounding the investor with absolute
security, and continuity of policy
amounting to permanency, which is
necessary for both the borrower and
lender in transactions of this pecul-
lar character, enduring perhaps be-
yond the life Of both parties, which
state management alone could best
bring about.
(c) The substitution of a specially
designed body instead of individuals
or corporations operating for profit.
I'D It would inaugurate system
familiar to the European farmer and,
undoubtedly, many of these will be
coming to our country after the close
of the war. And our experience has
been that the European farmer is the
best class Of immigrant. 1t would en-
able tenants to become owners and in
duce a genuine "back to the farm"
movement from the cities.
(e) In addition to all of these
things, it would place our state in the
front rank as the pioneer in inaugu-
rating a real, effective, practical farm