The Bottineau courant. (Bottineau, Bottineau County, N.D.) 1895-1929, 1919-01-23
BANK PLAN HITS
MONEY TRUST
STATE INSTITUTION TO BACK
STATE-OWNED ENTERPRISES
AND MAKE LOANS AT COST

STATE-OWNED ENTERPRISES
AND MAKE LOANS AT COST
The most terrible" thing first
that seems to be the order in which
the farmer legislature of North Dako-
ia is approaching it's business. Inas-
much as financial domination by the
money power is the key to most of
the exploitation of the common people,
the ending Of this financial power is
about the worst thing the farmer leg
islature could do. Their plans for a
state bank are we'll under way and
the measure will probably have passed
both the house and the senate before
this article is read.
In the same sense in which it is the
most terrible thing for the money
trust, it is. the most necessary thing
for the common people, for without
the rest Of the farmers program, in
cluding such things as state-owned
elevators and cold storage plants,
could be held up indefinitely. All that
the money trust would have to do
would be to close the market to North
Dakota state bonds, or deny business
credits at certain times. The state
bank will make the whole state inde-
pendent Of these outside autocrats,
and especially those Of the Twin Cit
les where North Dakota bankers have
to keep about $30,O00,O0O on deposit.
The new state bank is designed to
fill place similar to that of the Fed
eral Reserve bank in relation to the
other national banks. It will be able
to accept the reserve deposits of
North Dakota state banks which are
now being sent to the Twin Cities,
and it will be able to rediscount the
commercial paper of these banks
just as the central Federal Reserve
bank does.
" Abundant Deposits
The state Of North Dakota will issue
bonds to the amount of $2,000,0O0 to
furnish the bank stock. All public
funds belonging to the state, county,
city, school district and township will
be depo ited in this bank. from this
source alone, therefore, the oank will
have deposits ranging from $5, 5000, 900
to S35,O0O,00O. 1t will be able to accept
private deposits by individuals and
corporations in any amount, just as
other banks do. Also it will have, as
has been said, very large part of
the $3O,OO0,000 reserve deposits car
ried by North Dakota banks in the
Twin Cities, because the facilities for
doing business through this central
bank should have at least $60, 900, 900
in deposits, and probably great deal
more. ..
The deposit provisions of this great
bank plan, are much less important
than what the bank will do with the
money after it is deposited. Here we
find provisions which distinguished it
radically from all other banks in the
United States, except possibly the
state managed savings banks of Mass
achusetts. In the first place the bank
vii be run at cost. Anything accumu-
lated beyond expenses will go to in
creasing interest to depositors or to
reducing interest charged on loans.
The deposits will be used to finance
the states new industries, for redis-
counting commercial paper of other
banks SO that they can lend more to
the people, and for lending directly
to individuals on first mortgages and
warehouse receipts.
Aid In Grain Marketing
The lending on warehouse receipts
will go long way in making the
farmer Independent Of the market
thieves. In the early fall he can store.
his grain in the state-owned elevator.
But suppose he needs ready money, as
happens SO frequently? Under the
present system designed by QUIZ sup,
posedly efficient enterprise, this needy
farmer would have to sell when he
brings his grain in to the elevator and
take the ridiculously low prices offer
ed for it in the early fall. In most
sections, too, the bankers arrange the
loans SO that they come due just after
harvest, and thereby force the farm
er's grain on the market at the worst
possible time. II
Under the new methods, on. the
other hand, the North Dakota farmer
will get a. warehouse receipt for his
grain, and If he needs money hecwilI
be able to borrow on his warehouse re-
ceipt from the state bank any sum
up to ninety per cent Of the market
value Of the grain. He will thus get.
what money he needs to pay of the.
bankers and butchers and grocers, and
at the same time will remain the ow-
ner Of the grain until he thinks the
market is right to sell.
Because, the security offered, that
-, the grain ID storage, properly in
sured, is about the best security ia
the world, the rate Of interest on
4haaos Ina1aa will - VAR, lossr psfsrnfn