The Bottineau courant. (Bottineau, Bottineau County, N.D.) 1895-1929, 1919-05-08
MANAGER CHOSEN FOR
new n. D. STATE BANK
James R. Waters, Bank Exam.
liner, to Head Credit Sys-
tenn for Farmers.

The first part of the new North
Dakota industrial program to be car
ried out is to be the state bank. James
R. Waters, who has been bank exam
liner under the Frazier administration,
has been appointed manager and a
suitable building has been rented in
Bismarck. The bank will be formally
opened as soon as the necessary fur.
niture a be secured and the bank
stock bonds printed. It is not neces.
sary to sell the bonds first and the
management of the new bank may
keep them until such time as the best
bargain can be secured.
Oliver 8. Morris, we'll known in the
Northwest as the editor of the Non
partisan Leader, has been made secre-
tary of the Industrial commission,
which has charge Of the big develop
ments specified in the new legislation.
The provision of state-owned mills and
elevators, the building of homes and
ready-made farms will follow quickly
upon the establishment Of the state
bank.
The public deposits Of the state,
county, city and township govern
ments will give the bank initial funds
Of from SIS, ooo. 900 to 10000, zoo. The
reserves of most of the 700 state
banks will be quickly added, and 1t Is
expected that large individual deposits
will be made. Many state bank men
have already expressed their approval
of the state bank, for the bank offers
many inducements to them.
Aid for State Banks.
Their bank clearings can be better
handled through a central bank in the
state than through banks in the Twin
Cities, or Chicago, as is the ase now.
The state banks need the rediscount
privilege which national banks now
have through the federal reserve sys-
tenn and which the new state bank
will offer.
BY this method the private bank
will be able to take notes Of farmers
and business lei to the new state
owned bank and r%ediscount them or
in other words get money which 1t
can loan to other farmers and bust
ness men. This practice has greatly
increased the lending power Of u ma
tional banks and to extend 1t to state
banks will greatly increase the avail
able credit of North Dakota banks and
probably do much toward lowering in
terest rates.
State banks will also have an in
ducement to become members of the
system by reaso of the fact that the
government bank will redeposit some
kof the public funds in member banks.
Reduction in Interest Rate.
The new laws provide the state
owned bank with a special fund OF
$1O,OO0,O0O which can be loaned to
farmers on first mortgage security and
on warehouse receipts for grain stored
In accepted warehouses. The security
for loans of this kind Is absolutely
safe and state competition will do
much to reduce interest rates not
only on the loans made by the banl
itself but on all loans Of the kind II
the state. "A reduction OF only / pei
cent on more than the ,$3O0,000,00G
worth Of mortgages which North Da
kota farmers now are carrying would
save them better than S3,O0O,O00 /
year. The probable reduction win u
much nor and the foreclosure sharl
will DO eliminated.
Money Trust Eliminated.
The new bank will do much ~ 8
Surs the succsss ~ the rsst NJ ~ ~