Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-01-14
NORTHWESTERN .NEWS|

milling and, elevator association. . the
state home building association and
other utilities, enterp rises and indus
tries, the Bank Of North Dakota will
Immediately get down to business by
issuing $4,000, 900 in state bonds and
depositing these bonds in its vaults a.
collateral representing the capital
provided for in the bill now before the
house.
When Deposits Will BA Received.
Having complied with the law in
the, matter of paid In capital, repre-
scented by these $2,000,0 900 worth of
state bonds, every dollar Of which will
represent a first mortgage on every
foot Of North Dakota realty, the Bank
of North Dakota will be ready to re-
ceive deposits, and under the law Gre
ating this bank the first, of its as
sumed deposits are an estimated total
Of $25, 900, 900, representing the pub
lie funds Of the state, the counties,
townships. school districts, cities.
towns and villages, now on deposit in
700 state banks, scattered over North
Dakota, and $35, 214,799.31 which on
November 1. 1918, represented the
legal reserve Of these 700 state banks
and four trust companies.
Funds deposited by state bknks in
the Bank Of North Dakota shall> be
deemed available funds within. the
ton $40 of the compiled avs OF
1913" provides Sec. 8 Of the state
banking act.
Sec: s declares that "A1l state.
county, township, municipal and
school district funds; funds of penal!
educational and industrial institutions,
and all other public funds shall DO de-
posted in the Bank of%North Dakota
within three months from the passage
and approval OF this act, subject to
disbursement for public purposes on
checks drawn by the proper officials"
Sec. 5 provides that 1.-THE bank
shall be opened and shall proceed to
transact business whenever there shall
be delivered to the industrial COM
mission bonds in the sum Of two mil
lion dollars, issued by the state as may
be provided by law for such purpose"
Problem Of High Finance.
The problem of floating the states
bonds becomes a simple proposition Of
high finance. Whenever a million or
two is required for the financing of q
state-owned elevator or -four mill or
other enterprise, the bank has merely
to transfer that sum from its deposits
" IN S1CAAI VI AZ SOAAA
mission, which also controls the
bank, accepting in security therefor
state bonds to the amount Of the loan,
which the industrial commission ma
authority to issue in any amounts.
League legislators have been some
what in the dark on this proposition.
A Nonpartisan representative this
morning was discussing a possibility
Of the states having trouble I'M dis
posing Of its bonds in the open mar
ket, because of the litigation in which
the amendments authorizing the issu-
ance Of these bonds has been involved.
He contended that should there nave
been no question as to the legality or
constitutionality Of every preliminary
leading up to the issuance Of state
bonds they should, with North Da-
kota's productive farms as their Sc
curity, represent a good investment at
S to S ga per cent, but he admitted
that in view Of the fact that every
bond buyer may be buying a law suit,
there might not be any popular de-
mand for the issues.