The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1918-10-21
The Editors Mail Bag

TO The Editor of The Forum:
nay attention has been called to an editorial in
a recent issue Of The Forum, in which it was
charged that l misrepresented, in a published
article the provisions of the proposed amend
ment to Section 1872 of the state constitution
AS nothing was further from nv mind than to
make any misstatements relative to this amend
ment will restate the provisions of that amend
ment as l understand them.
1t provides first for an unsecured debt limit
of two million dollars second that the state
credit may be loaned to public owned utilities to
the extent Of ten million dollars to be secured
upon the real and personal property of such
utilities: third the credit of the state may be
loaned to secure cheaper capital for investment
in farm lands to be secured by first farm mort
cages. In the third provision the loan must not
exceed in amount one-half of actual volue.
properly speaking the second and third pro-
debt. There is wide difference between a state
debt and the loanng of state credit for the pub
lie welfare In the former the debt must be
met by taxation; while in the latter, it is met
by the income and does not become burden
upon the public. With small interest margin
to create a sinking fund against losses and to
bear the cost Of administration it is not possible
for the people of this state to lose a dollar UNI
der the second anil third provisions.
The state of North Dakota has been in the
farm mortgage business for 80 years 1t has
loaned $4,000, 600 and foreclosed one mortgage
The land department loaned $1,000 on gao acres
IN Billings county. The mortgage was foreclosed
and the land resold for $780, the state making
over $1,000 by the transaction
1t is my Judgment that this constitutional
amendment is in accord with the best thought on
public finance Of the age. A nation can scarcely
be found in the world today which does not loan
it's credit to private industry. The government
may loan money to private industry, guarantee
bonds. or through governmental agencies secure
the sale of bonds upon collective property.
The uniformed reader gets the Impression
from The Forum and other newspapers Of the
state, that here is something absolutely unique
and unheard of, which the people of the state
are attempting to bring about. On the contrary
for two generations, the great modern nations
Of the world have been doing the very things con-
ternplated by this amendment to the organic law
If this is a sociaIistic program, then there are
many socialsttc governments in the world.
For instance direct government loans to
farmers are made by Great Britain, Russia, Dem
mark Sweden, New iceland and Australia. Bonds
issued by land mortgage institutions are guar
anteed either by the central or provincial gov
ernments in Austria, Switzerland, Norway, Egypt
Australia, Mexico, Argentina and Uruguay. The
governments of the following countries have CON
tributed by endowment to the capital stocks of
land mortgage institutions; France, Italy, Hun
capital stock in institutions have been made by
the governments of Hungary, Runania, Swift
zerland Denmark Norway, the PHILIPPINE Is
lands and Chile. Government funds are loaned to
such institutions in France, Italy, Servia, Chile
and Japan. All of these things have been done
in Prussia since the time of Frederick the Great
Space forbids the details Of the operations OF
credit to private enterprises but f the editor Of
The Forum thinks that its readers will be inter
ested in a. discussion of this very grave and im-
portant question OF public finance, viii only be
too glad to contribute articles which will be sub
iect To public criticism and correction through
the editorial columns of The Forum
do not consider that the debt limit is removed