The Bottineau courant. (Bottineau, Bottineau County, N.D.) 1895-1929, 1919-03-27

y LA OULVHlAA
0F.INDUSTRIES
PROPOSED FINANCIAL INSTITU-
sTION WILL MAKE INDUSTRIAL
PROGRAM SURE OF SUCCESS !
Perhaps the most important indus
trial measure enacted by the Sixteenth
Legislative Assembly is that creating
the Bank of North Dakota. It is to be
the cornerstone of the splendid edifice
which the organized farmers have
taken the preliminary steps toward es-
tablishing it is generally admit
ed that the industrial structure plan
cannot be built without this bank as
a firm financial foundation.
With the Bank Of North Dakota in
operation, however, it is certain that
the state owned terminal elevator and
flour mill system will succeed, that
our vast Ignite deposits may be de-
veloped, that the home saving bill can
be inaugurated, and that backed by it's
own public funds, the state can finance
it's own institutions if outside bank
ers refuse because of political preju-
dice. Finance is the basis Of all busi-
ness and the Nonpartisan League leg
islative experts displayed great wis
dom when they refused to embark up
on their program of state owned in
dustries until they had provided a
method of sound banking.
There is nothing experimental about
the proposed Bank Of North Dakota.
Neither is it any way revolutionary" !"
1t simply is a carefully considered
measure which combines the best fea-
lures Of the Federal reserve bank and
the farm loan act and adds to this
several constructive features pattern
ed after the Australian land banks
and the cooperative farm loan associ-
ations Of Europe.
Combines Best Features
Both the federal reserve bank and
the farm loan act now meet with the
entire approval of financiers-altho
both were bitterly opposed by bankers
prior to their passage and the Bank
of North Dakota is designed to do for
this state what these other two meas
ures have done for the nation as a
whole. .ss
Already this proposed measure has
been approved BY many North Dakota
bankers and one Of the leading finan-
ciers Of this state has privately admit
ted that while it Injuries his personal
interests which really are involved
with Minneapolis institution-it will
be boon for the Independent bank
ers Of the state and benefit business
as whole as well as promote agri-
cultural production.
Certainly, this is exactly the effect
the Bank of North Dakota will have if
the experience Of other common
wealths in any criterion as to the re-
suit of similar legislation in this
state.
South Australia has had a land
bank in operation for Is years and in
1911 out Of q population Of 411,464
people there were 179,478 depositors.
In other words A per cent Of the en-
tire population of South Australia
had deposits in the state bank and
these deposits averaged nearly 5000
each or nearly $50 per capita No state
in the United States can boast such
a record. It also is a fact that larger
proportion Of workingmen own their
own homes in South Australia than
anywhere else in the world.
West Australia also has a land bank
and in 1914, after it had been in op-
Grafton for 81 years, it had the won
derful record of never having evicted
a borrower or foreclosed q mortgage,
and, altho it loaned approximately $8,-
OOO, 900, it never lost a penny in bad
debts and was operated at profit.
The managing director Of the South
Australian land bank declared that its
operation was so successful that the
other Australian states were forced to
enact similar legislation to keep their
populations from migrating to South
Australia.
Australia is not the only place
where land banks have proved success
full. They are in operation in Russia
Germany, Italy, New Zealand, Switz-
erland, practically all the British col
onies. Denmark and Holland.
Ireland is another example Of what
IL land bank does to promote prosper
ity. Forty years Ireland was the most
impoverished Of all the British depen-
denotes. Today, thanks to the opera
tion Of the Gladstone land act, q larger
proportion Of Ireland are home owners
than ia Scotland, England or Wales,
In all these European and Antipo-
dean countries the land banks are ad-
ministered on the same general scheme
that. II nroposed for North Dakota.