The Bottineau courant. (Bottineau, Bottineau County, N.D.) 1895-1929, 1919-02-20
BANK d NORTH
DAKOTA GREAT HEIR

e1O1NN1 i 0
Proposed Bank VIII Release
State From Grip of
....s. Money Trust.
Bismarck. N. D., Feb. s5s-The most
important bin before the present legis-
lative assembly, which Will likely be up
for final passage during the present
week, IL the one creating the Bank OF
North Dakota.
II is the cornerstone Of the splendid
new Industrial <dince which the league
program will rear In North Dakota
and It ID everywhere admitted that. the
bank is necessary to insure q success
ful carrying ont Of the program Of eco
nonnic reforms within the state
With the Bank Of North Dakota N
operation It Is certain that the state
owned terminal elevator and 1our mill
system will succeed, that the vast lig-
mite deposits will be successfully de-
veloped, that the home savings bill may
be inaugurated and that backed BY Its
own public funds the State Of North
Dakota car finance its own institu-
lions, regardless of the domination Of
the money trust.
There Is nothing experimental or
revolutionary about the new Bank Of
North Dakota plan. II is merely d
carefully considered measure which
combines the best features, Of the
Federal Reserve bank and farm loan
act, and adds to these several con-
~structive features patterned after the
Australian land banks and co-Opera-
tive farm loan associations SO loIg In
successful operation elsewhere.
Both the federal reserve bank and
the farm loan act now meet with the
approval Of fnanciers everywhere, and
have been Of great benefit to the peof
ple-although both were bitterly OPP
posed by bankers prior to theft pass
age-and the Bank Of North Dakota.
is destined to do for this state what
these two measures have done for the
nation as q whole.
South Australia has had a state
land bank in operation for e gears
and in 1911 out Of population Of
All, 464 people there were 179,47S de-
positors, or In other words, A per cent
Of the entire population of that coun-
try had deposits In the state bank,
and these deposits averaged. approx
mately $50 per capita. No state in the
United States can boast Of such a
record. It has also proven that a
larger per cent Of .workingmen land
small farmers own their homes and
farms in South Australia than any
where else in the world.
Will Bring Many Benefits.
Advocates OF the new land bank
for that is what the proposed Bank
OF North Dakota will be-contend that
1t will accomplish the following re-
suits In North Dakota:
1. Put more money in the financial
institutions of this state. by acting as
q reserve for banks that now keep
their reserve funds in the twin cities.
2. Stabilize financial institutions OF
the state and add to their security. I
8. Reduce the interest rates and
promote industry. .
A Put more money in circulation
thru its guarantee Of deposits which.
will bring out large sums Of money
now boarded.
5. Bring in outside capital by the
sale OF bonds based on North Dakota
real estate. The municipal bank Of
st. Paul has more than 100000 on
deposit, practically all in small
amounts from wage earners. It Is
believed that the Bank of North Da-
kota will attract depositors OF this.
sort from all the United States and
that the bonds will have a ready sale.
6. Promote agriculture as well as
develop industry by making, money
easier to borrow at lower interest.
Every one Of the foregoing reasons
viii benefit bankers as well as bust
and farmers. Even the re-
duction Of interest rates, p~aradoxcal
as It may seem, will not ~injuriously
affect bankers. It will be an advan-I
tage 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 commissions and pre-
miums. Reduction Of interest viii
Increase the certainty Of payment, add
the value Of real estate 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
loans outside capital at commission.
Many Bankers Praise AT.
Legitimate bankers realize the pro-
posed state institution does not injure
their Interests and from al1s parts of
the state Nonpartisan league legisla-
tors lavereceiyed letters from country
bankers praising the net ~ an
Enouncing their intention 81 coming y.