The Washburn leader. [volume] (Washburn, McLean County, N.D.) 1890-1986, 1919-01-17
$60,00O,0OO FOR
BANKS OF n. D.
IMMENSE CAPITAL WILL BE I'M
MEDIATELY PROVIDED FOR
PURCHASE OF BONDS
SIMPLE HIGH FINANCING
STATE SECURITIES FOR COLLAT-
ERAL ON LOAN OF STATE
FUNDS MAKE 1T EASY


FUNDS MAKE 1T EASY
With resources of more than $50,
100000 at the outset of it's Bank of
North Dakota, the league need not
worry greatly about finding a market
outside of the state for the bonds
which will be issued to finance state
owned utilities, enterprises and indus
tries.
This is the opinion in conservative
banking circles here.
Bankers believe the state will buy
its own bonds, and that so ong as the
!. Investment market remains as antag-
onistic as it has been for some time
to securities depending upon the faith
and credit, of North Dakota, no state
bends will be offered for sale through
the usual channels.
Resources Assured
More than $6000O,000 in resources
are assured for the State Bank of
INOItA OdhOIa I'LL Ou6A WV ooNA WV
alone. These are the public funds of
the state and all of it's county town.
ship, school district and municipal
divisions, for which the state bank is
made sole repository and the legal re-
serve required from state banks on de-
mand deposits and time certificates OF
deposits, which November 1, 1918, to-
tailed $35, ,214,799.31.
After the league has declared the
amendments. initiated at the recent
election carried and has passed Its bills
creating State Bank of North Da!
kota, and industrial commission to
manage this state bank and the state
milling and elevator association, the
state home building association and
other utilities, enterprises and indus
tries, the Bank of North Dakota will
Immediately get down to business by
Issuing s2,0OO,O00 in state bonds and
lepositing these bonds in its vaults as
collateral representing the capital pro-
yided for the bill now before the house.
Having complied with law in the
matter of paid in capital, represented
e by these $2,00G,0OO wirth of state
bonds, every dollar of which will rep
resent first mortgage on every foot OF
North Dakota realty, the Bank OF
North Dakota will be ready to receive
deposits, and under the law creating
this bank the first Of its assuerd de-
posts are an estimated eotal of $25,-
900 900, representing the public funds
III the state, the counties, townships,
school districts, cities, towns and vii
lages, now on deposit in 700 state +
banks scattered over North Dakota,
and s35,214,799.31 which on November
L, 1919, represented the legal reserve
bf these 700 state banks and four
trust companies.
. Funds deposited by state banks IN
The Bank of North Dakota, will be
deemed available funds within the
meaning of that term as used In Sec
stion 517O of the compiled laws of
1913" provides Sec. 8 of the state
banking act.
Sec. 6 declares that "All state, coun-
ty,s y,stownship, municipal and school dis
trict funds; funds Of penal; education
al and, Industrial institutions, and all i,
other public funds shall be deposited
IN the Bank of North Dakota within |.
"a nos and
of this act, subject to, dis
hursement for public purpose on ,
checkssdraWn by the proper officials. T.
8 Sec 5 provides that {. The bank shall :
BE- open and shall proceed to trans Il
act business whenever there shall be
to the industrial commission
bonds inS the sum Of two million dol =
ars issued BY the state as may be pro.
rided by law for such purpose" r.
g. The problem of floating the states +,
oonds became simple proposition OF Il
,igh finance. Whenever a million or u
No required for the financing Of a u
Itate.owned elevator or flour mill sor {,
,ther enterprise, the bank has merely 4
~ IN transfer that sum from its depos- Fl
! pto the credit Of the industrial COM /
Mission which also controls the bank,
Lc,cepting in security therefor state b
,t1anGis to the amount of the loan which / \
ne industrial commission has author ttt5i I,
ty to issue in any amounts. ~ Ii,
seague legislators have been some IB
What ia the dark on this proposition II
rtisan representative the ltt
Ither day was discussing a posi- bility ttI
the state having trouble sin dispos- ii