The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1919-05-23
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
n. 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 can be secured and the bank
stock bonds printed. 1t 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 S. Morris, we'll known in thu
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 $4,000, 900 to $4,000, 900. The
reserves of most Of the TOO state
banks will be quickly added, and it 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 case 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 men to the new state
owned bank and rediscount 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 our ma
tional banks and to extend It to state
banks will greatly increase the avail.
able credit of North Dakota banks and
probably do much toward lowering in.
terest rates, 81 u
n State banks will also have an in.
ducement to become members OF the
system by reason of the fact that the
government bank will redeposit some
of the public funds in member banks
Reduction in Interest Rate.
The new laws provide the state
owned bank with a special fund OF
$10,OO0,000 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 bank
itself but on all loans of the kind In
the state. A reduction of only l pei
cent on more than the $300,000,00O
worth of mortgages which North Da
kota farmers now are carrying would
save them better than 100000 a
year. The probable reduction will be
much more and the foreclosure shark
will Be eliminated.
Money Trust Eliminated.
The new bank will do much to in
sure the success Of the rest of the far
mers' industrial program, for without
it the state would be at the mercy OF
the great financial interests. BY the
sudden denial of bank credit or by re
fusal to take state bonds at fair fig
ures, the financiers could play the
game for the milling combine and the
land spectators. But as it Is the
state bank alone stands between the
depositors with money to lend and the
credit needs of the new state institu
lions. The money trust is eliminated
and at the same time legitimate bank
ing is encouraged.