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


tend that it will accomplish the fol-
lowing results in North Dakota.
Put more money in the financial
institutions of this state by acting as
a reserve for banks that now keep
their reserve funds in the Twin Cities.
2Stabilize financial institutions of
the state and add to their security.
3-Reduce the interest rates and
promote industry. "s
Put more money in circulation thru
its guarantee of deposits which will
bring out large sums Of money now
boarded.
5Bring in outside capital by the
sale Of bonds based on North Dakota
real esthte. The municipal bank of
st. Paul has more than $3,O0O,O 900 on
deposit, practically all in small sums
from wage earners. It is believed that
the bank of North Dakota will attract
depositors Of this sort from all the
United States and that the bonds will
have q ready sale. @aa,
6Promote agriculture as well as
develop industry by making money
easier to borrow at lower interest.
Every one of the foregoing rcasons
will benefit bankers as we'll as busi-
nessmen and farmers. Even the reduc-
tion of interest rates, paradoxical as it
may seem, will not injuriously affect
bankers. It will be an advantage to
the real lenders of money. The man
who lends money now does not get all
of the high rates, the difference being
absorbed by other agencies in COM
missions and premiums. Reduction of
interest will increase the certainty of
payment, add to the value Of real es-
tate mortgages and actually operate
to the advantage Of the local banker
who loans his own money. The only
persons in any way harmed will be
the agents who loan outside capital at
commission.
Legitimate bankers realize the pro-
posed state institution does not injure
their interests and from all parts of
the state Nonpartisan league 1egisla-
tors have received letters from coun-
try bankers praising the act and an
nouncing their intention of coming in
under its terms the moment the law
is passed and the Bank of North Da-
kota organized.
Certainly, the proposed land bank
will benefit the people of the state as
a whole by loaning part Of the public
funds, part of its deposits, and part
Of its capital required by the sale Of
real estate bonds, to farmers ant
others ats q low rate Of interest. =
At the present time the farm lands
Of North Dakota are mortgaged fol
the staggering sum of $309, ,0O0, 900
These mortgages for the most part
are held by trust companies outside
the state and the average rate of in.
terest paid on this gigantic sum is 81
per cent. 'as
In other words the farmers Of NORTH
Dakota are paying an annual interest
bill of $685. 900. BY loaning money
at 6 per cent interest the Bank o1
North Dakota can enable the farmers
to retire their private mortgages ane
replace them by longtime loans. This
will save the farmers of the state
$8,343,0O year, or nearly 500 fol
each farmer in North Dakota.
These are but few of the benefit:
made possible by the Bank of Nortl
Dakota. They are benefits which have
resulted everywhere state land bank.
have been operated and this consti
tutes the strongest possible reaso1
for believing that here, too, this finan
cial measure will develop home indus
tries, encourage home building, bring
out hidden savings, induce settlers tx
locate within the state, increase agri
cultural production and promote gen
eral prosperity.