The Bottineau courant. (Bottineau, Bottineau County, N.D.) 1895-1929, 1921-12-15

Company have agreed to take bonds
up to $5O0,OO0 a month and, as a
matter of fact, will take up to ST.
| 100000 a month if delivered. It is
hoped that the bank will take into
consideration the vast number Of ap-
plicants who need loans to save their
farms. There is nothing now standing
in.the way Of relieving these farmers
who are likely to lose their farms,
except the mechanical ability to
handle the volume Of business.
Should Handle Municipal Bonds
The bond department has success
fully performed it's first duty which
was to sell the bonds Of the state of
North Dakota. There is much more
involved in the successful operation
Of the bond department than the sin
gle purpose Of selling bonds Of the
state Of North Dakota. The establish
ment Of market for North Dakota
bonds thru the Bond Department OF
the Bank of North Dakota has placed
the bank in position where it should
now be able to find a market for
school and municipal bonds issued
thruout the state. The bank has here
tofore declined to undertake to
handle bonds for school districts or
municipalities, on the theory that un-
til it gets it's own market established
it ought not to undertake the market
ing Of other bonds. Now, however,
that it has it's bond market thoroly
established it should undertake for
moderate commission, sufficient to
cover it's overhead, to sell bonds or
to act as fiscal agent for school dis
tricts and municipalities. Likewise, it
should undertake to obtain a market
for school and municipal warrants,
charging for such services sufficient
to cover it's operations. .-
There is vast undeveloped field
in this direction which the bank is
now in the best position Of any fin
ancial institution in the state to con-
duct and handle. Financial state
ments and certificates Of legality COW
ering warrants issued on bonds to be
issued should be filed with the bond
department by districts or political
subdivisions desiring to negotiate the
sale Of school or municipal bonds or
warrants thru the bank. The
bond department, thru it's finding an.
outlet for warrants and disposing of
the same will prevent the closing OF
schools thru inability to get warrants
cashed prior to the collection of taxes.
Explains "Frozen Funds"
| The credits department is charged
with the credit relations with banks,
including redeposits and loans to
banks and loans to state institutions.
There is popular misconception as
to the redeposits in banks, particular
ly the redeposits in the closed banks
About 80 percent of the redeposits in
closed banks was not placed there by
the Bank of North Dakota and the
1 same statement is generally true as
to- redeposits in going banks. These
deposits consist of funds formerly
placed in those banks by former
! treasurers. The banks were unable to
pay to the treasurers or to the Bank
of North Dakota the amount Of those
redeposits at the time the transfer
was made by the treasurers to the
Bank of North Dakota. The funds
previously deposited were allowed to
] remain there simply changing the title
/ Of the account and the authority OF
i check thereon from the local treasur-
4 er of the Bank of North Dakota. At
no time from the time Of the transfer
Of such funds to the present time has
/ the bank been able to make withdraw
ais Of the present amounts and for
that reason the deposits remain to
that extent just as they originally
were.
Had the bank been able to with
draw the funds from these banks i
need not have registered any checks
for future payment. Furthermore
had the bank been permitted to con.
4 tinue as under the original law i
would have succeeded in eventually
converting q lot Of those redeposits
into bills receivable, supported by col
I lateral lbs was done in many othe1
z cases. These funds were original,
! guaranteed under the Guaranty O
I Deposits Act and the situation wa
l not changed by the transfer OF tn
4 ownership from the local treasurer =
the Bank Of North Dakota TIT
I amount Of new redeposits made O.
the Bank Of North Dakota, not sub
! sequently withdrew BY the Bank q
North Dakota, is negligible, # Ia
!, Guaranty 81 Deposits Act is operativ
there should Be no loss accruing from
|, those redeposits. An to bills receivabl
|. they are mainly supported by collaf
I / eral Ia double the amount of th
!. loan. G.
Publicity Department
The Department 81 Statistics a.
n Publicity has Had TO deal mainly wit
1.-THE future activities of the bank, wit
4 ! the compilation Or statistics and th
analysis 81 condition. financial, %
1 ftricuitural, marketing and econcmi'
III function has been " 1urnis
u Csntinusd en axs ,ssS ssSI