Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-12-08
BANK T0MAKE
FIRST LOANS
WITHIN MONTH
And Rural Credits Dept
Will Be in Full Opera
ton by Feb. l.
(Herald snecia, Service. !,

(Herald Special Service.)
Bismarck, n. D., Dec. 8.-With in
structions from the industrial commits
SION to get the money out as safely
and efficiently as possible and only to
actual farmers on a conservative
basis Wilbert B. Default, newly
appointed manager Of the farm loan
department of the Bank Of North Da-
kota already has the wheels Of or
sanization turning in the department
to that end.
Mr.. Default has taken over a de-
partment badly disorganized, and he
hopes to have it running smoothly
within very short time, expanding
from a. skeleton organization as rapid
ly az possible. Mr.. Default, who
brings to the department 26 years ex-
perience in the farm loan business in
North Dakota, believes the depart.
ment will be able to make some loan:
within 80 days and to be loanin;
money to farmers on substantial.
basis by February 1.
On Conservative Basis.
The farm loan business will be
handled on a conservative basis from
the very start. Mr.. Default empha-
sized today. No loan will be made
exceeding SO per cent Of a conserva-
IAVS Vd1Oe OL IAc ld1lU OH "AlCl1 lIo
loan is made, as determined by COM
petent and disinterested appraisers.
Governor Nestos and Mr.. Default
both particularly emphasize the ne
cessity Of guarding the funds Of the
state through careful appra1sals on
this basis.
The first concern in making loans
will be to help those farmers who
need help most, it is stated. Mr.. De-
Nault has some definite ideas Of the
| proper manner in which to make
loans for the good Of the state and in
the interests of the successful conduct
Of the department.
Redemptions First.
/ In considering applications Mr.. De-
Nault will recommend to the indus
trial commission giving priority to
loans to be used in redeeming from
land foreclosures where the redemp-
| ton period will soon expire. Such ap-
| plications would thus have first op-
portunity toSget loans
Loans will be made only to actual
farmers living in North Dakota and
farming their own farms. Mr.. De-
Nault believes this law is equitable
that the person owning a. farm who
| have other means of livelihood should
stand aside while the actual tiller of
the soil is served.
Mr.. Default also believes that it is
for the better interest of the state tc
make many small loans rather than a
few large ones. He does not believe
that any loan should be made for
more than $4,000. While going
through his inventory Mr. DeNaul,
pointed to an application for $50.
900 loan in Bottineau county. That
loan probably will not be made, Mr.
Default said. because the owner OF
that land probably is not in nearly sc
great need Of a loan as many farm
er desiring $1,000 on small farm.
| Real Appraisers.
Outlining in a general way the car
dinal principles which will guide the
conduct of the farm loan business Mr.
Default emphatically emphasized tina,
mo one will be considered for the po'
Ation Of appraiser who has not al
ready demonstrated his ability over
some years of experience" His rule
will be to seek out the man with
ability in this line. The job OF ap
praiser will not be a political plum, he
femphatically declared.
The administrators policy. settled
after numerous conference, is thaj
loans will be made with conservative
safety as the first and prirar!
requisite and as speedily as possible
There are now available several hun.
dred thousands Of dollars for making
farm loans. Three million dollar,
worth of bonds will be delivered a.
fast as the money can be used up il
farm loans. New bonds will be is
sued as soon as this amount of none,
is exhausted.
Many Applications
No false hope is held out by Mr.
Default or the administration. Mr.
Default found when he went on th'
Job here this week that there was {
total Of 81 4.3S1,o9o Of unappraised loar
applications on hand in addition K
$1.Ss4.soo appraised applications ap
proved by the old administration, anc
not yet closed into loans, a grand to
tai of about six and one-fourth mil
lions. The department. which hat
been reopened shortly before election
was disorganized when Mr.. DeNaul
took 1t over this week. Until recentl,
there had been but one clerk and on
stenographer on the job. With tn
great number Of applications alread.
on hand. with appraisals to be mad
and scores of other details in connec
ton with the loans to be worked out
1t will probably take several weeks t,
get the department well organized an,
functioning properly.
There is, however. the confident ex
pectation on the part Of the admins
tration that several million dollars will
be loaned out before the winter &
over, and that when the new real es
tate bonds are sold the interest rat
will he lower than that provided in tn,
bond contract OF the former industria
commission.
nEnIYNTTnN M ~.