Sioux County pioneer. (Fort Yates, Sioux County, N.D.) 1914-1929, 1919-06-19
NEED BANK TO
PROTECT STATE.
New Industries and Low Inter-
est Rates Impossible With
out Central Bank.


Der of the bankers Of the state are
supporting the law providing for the
Bank of North Dakota and have made
application for the bonds to be Issued
to supply its capital, number Of
newspapers are filled with l. v. A.
literature which pretends to find fault
with the law and to fear that 1t will
not do for the banks and the farm
ers what it proposes to do. No voter
should be deluded by such pr0pa-
ganda, which is entirely political in
It's nature and which hopes to beat
the law, not because it is a bad law,
but because by its defeat they might
claim a purely political advantage.
Bank 10 Essential.
House Bill No. 10, which creates
the Bank of North Dakota, is another
the success of the Nonpurtisan league
program.
Banking Is the foundation Of all In
dustry and 1t would be impossible to
conduct the terminal elevator, home
building association and other state
enterprises without the Bank of North
Dakota. If the state Industries were
privately financed, they would be de-
pendent upon Twin City banking in
situations controlled by the same in
terests which profit by the exploitation
of North Dakota and oppose the farm
ers' program. Naturally, Twin City
banks controlled by the Minneapolis
Chamber of Commerce would try to
cripple the state-Owned utilities of
North Dakota and they could do this
very effectively by curtailing cash and
credit at critical periods.
WOth the Bank Of North Dakota in
operation, however, the people of this
state are Independent of hostile out
side finunciers and the state-owned
terminal elevator and flour mill sys-
TEN always will be sure of sufficient
money to move the crops, to encour-
age home-building, to develop our lig-
mite resources, and to finance oil legi-
innate business and agricultural un-
dertakings.
Bank Now Organized.
The Bank of North Dakota was Or
gnnized last month and will aid the
financing Of this years harvest. Its
managers and other employees have
been appointed and It's regulations
drawn after consultation between the
Industrial Commission and the leading
bankers of the state. Arrangements
also have been started to have the
Bank of North Dakota affiliate and CO.
operate with The Federal Reserve
Banking system. "r
Bankers and business men are
agreed the state law is sound, con-
'structive measure that will be of in
'estimable value in promoting the agri-
cultural and Industrial development of
North Dakota. The Bank of North
Dakota combines the best textures of
the Federal Reserve Banks and the
Federal Reserve system stabilized the
banking business Of the United States,
lmObilized credit in times of emergency
,and provided for more elastic cur
rency. The Bank of North Dakota
will do the same thing for the 700
private banks. of this state. The Fed
eral Farm Lean act has enabled hun
dreds of thousands of farmers to bor-
row money for longtime periods at
easy terms. The Bank of North Da-
kota will offer the same advantages
to the farmers of this state.
Keeps the Money in State.
The Bank 6f North Dakota will act
as a clearing house and reserve for
the 700 private banks throughout the
state. This will facilitate business
and transfer to North Dakota many
millions of dollars now carried by
North Dakota banks in the vaults of
the great financial institutions of Min
nenpolis.
1t is estimated that approximately
$2O,OO0OOO will be transferred from
Minneapolis to North Dakota. This
will add an average of 100000 to the
banking resources Of every county Of
the state. The result will be reduc-
ticn In the rate Of interest
Farmers Of North Dakota now pay
an average Of 81 percent interest on
some 5000, 100000 of farm mortgages.
In other words, the farmers Of this
state are paying $26.SS3,OOO every
year in interest charges on real estate
AO0ASos NAOoL VI ILLS AulCICSL kOCS u
loan and insurance concerns located
outside the state.
The Bank of North Dakota will be
the depository of all public funds and
these public funds will be used for
public purposes. They will be care
fully safe-guarded so there is no pos
sibility Of loss.
The capital of the Bank of North
Dakota is to consist Of $2,O0O,OOO, de.
rived from the sale of bonds issued at
8 percent. Conservative bankers agree
that the profits of the institution will
be sufficient to retire every penny OF
both the principal and interest Of this
bond ISSUE
There Is nothing experimental abou,
the Bank Of North Dakota. Almost
every nation Of Europe has state
banks. So do the Australian states
st. Paul, MIMI, has city bank Will
more than $3,OOO.OO0 deposits.