Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1920-11-29
Eisterns Financiers Again.
Losk rs State As Field For
Operations; Expect 10 Do
Much Toward Alternating
Financial Conditions.

draw from North Dak0ta eau OF
unfavorable legislation. are now pre-
pairing to resume financing in the
state, according to word received by,
Grand Forks bankers.
action TO that effect, which is ex-l
pected TO 20 far towards alternating
the present financial conditions exist
ing In the state, was decided upon at
a meeting of investment bankers held
in MINNEAPOLIS Saturday. w. c. Mac
fadden, of Fargo. secretary of the
North Dakota Bankers association,
was present at the conferences
The decision of the investors to re-
enter the North Dakota field was
brought about because of the passage
of the initiated laws which curtail the
amount of public funds controlled by
the Bank Of North Dakota.
Bankers in Grand Forks today said
they were confident that the passage
OF. the initiate law would mean the re-
entry Of farm loan investors in the
state. CIV. Ross, of the #. S. Sargent
company, has just returned to Grand
Fprks from an eastern trip. and he
said today that bankers and farm
loan investors in Boston, New York,
Philadelphia and Chicago were plan
ming to resume business in North Da-
kota. They considered the results Of
the November election. he said. as an
indication Of progress against the
Nonpartisan league legislation, which
two years ago caused these outsiders
to quit doing business in the state.
Comment about North Dakota now Is
much more favorable in eastern CEN
tiers, he said.
One Condition Attached.
There Is only one condition attached
to the re-entry Of capital into North
Dakota { this time. Such capital will
go back provided no laws are passed
which will nullify the effectiveness Of
the initiated laws.
Representatives of most of the large
farm loan companies met at the West
hotel in Minneapolis saturday. They
vent. into the whole. situation. At the
conclusion of the, conferences. Mr..
Macfadden, representing the bankers
of North Dakota, gave out the follow
ing statement:
passage of the initiated laws
curtailing the amount of funds to be
controlled by the Bank of North Da-
kota has lone more to reinstate in the
minds of the investing public a conf
dence in farm mortgages than any
thing else which has been done by, the
voters of. the legislature of the state
for several years.
s1;a Help For Farmers
The farm loan companies which
for years have financed the farm loan
business Of North Dakota and which
were compelled to withdraw from the
state on account Of laws that were not
favorable to investors are now prepar-
ing to re-enter the state for the pur.
pose Of assisting the farmers In theil
proper financing providing no new
legislation is attempted that will null.
ify the effectiveness of the initiated
laws adopted by such large majoritie.
in the recent elections.
There eve was a time in the his
tory Of the state when 1t was so essen
ttal to encourage capital to come init
the state a. now. The Overwhelming
vote by which the initiated laws were
passed indicates that the people of the
state are fully alive to the situation
Bankers Are Ready.
At the conferences held Saturday
h investment bankers decided tt
that they were ready to resume opera,
tions under the conditions named
Notices to that effect have gone out.
Under the law creating the Bank ol
North Dakota that institution was Civ.
en- absolute control of all public funds
It. was mandatory that all funds O.
towns. villages, cities, counties, schoo
districts and all other subdivisions o.
government be deposited in the stat,
bank.
The main initiated law, passed by
large majority at the present elections
now makes it possible for treasurer
Of public funds, other than purel,
state funds, to deposit them in othe
banks. The law takes effect on De
cember 2.