Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-03-25
NORTH DAKOTA
BONDS now IN
FAVOR In EAST
New York Firms Recon-
mend State as Desirable
Investment Field.

Bismarck, N. D., March 25.-Big
investment houses Of New York af-
filiated with large eastern financial
interests today received a repo.S from
met agents recommending North Da-
kOta as a favorable field for invest
ment. r
Inis report, which, according to
William G. Marvin, New York lawyer
and head Of a committee of invest
ment> house representatives, who have
been investigating the North "a -.
situation, probably will mean that his
BOND houses, insurance companies and
other eastern investors will again turn
to North Dakota as a field for invest
ment.
This report, it is said, is the first
favorable report sent to eastern fin
ancial institutions in North Dakota in
six years, n during that period rep
resentatives. Of the general interests
have been in the state making inves-
tigation
Mr.. Marvin declared the ~investiga-
tors believe that North Dakota Is
'i~ntrinsically sound" has, a low debt
In comparison to her assessed valua-
ton, and has a good future in the
development of her natural resources.
Mr.. Marvin and his co-investigators
during two days in the capital, follow
ing a visit tor other places in the state,
have been engaged in a study Of the
state reports, statistics and general
political and economic conditions.
Feared Former Administration.
Explaining the attitude of eastern
financiers toward North Dakota dur
ing the last six years, Mr. Marvin de-
clared the lnanciers felt that North
Dakota was not getting a sound, eco
nomical government and that the ex-
periments of the Nonpartisan league
would collapse sooner or later to be
followed by a period of political
chaos. n that North Dakota was
not, therefore, a safe place for in
Vestment.
His conclusion, he said, after his
visit here, is that the present admin.
~1stratton will remain in power, or an
antt-Nonpartisan league administra-
ton. that the bottom has been
scraped" in the period of depression
as it affects the state, that the market
trend is upward, increasing the value
of North Dakota products, and thai
the present administration is giving
the state the right kind of govern
ment.
Mr.. Marvin outlined five points up
on Which his committee based its
conclusions regarding the present ad-
ministration. They are:
States Reason for Change.
/. The efforts being made by Gov
ernor Nestos and other members o.
the administration to increase diver.
sificatiOn on he farms.
2. Economy in state government.
3. An attitude on the part of Gov
ernor Nestos of giving the state "a
good, solid type Of progressive gov
ernment,' not freakish.
4. Character of. men in the state
service, efficiency on their part, that
governor has maintained an oper
mind in seeking advice from experts
in various lines, agriculture, market.
ing. banking. #.. b.. =.
s.. Present administration is co.
operating with other states abandon.
interest eastern people in the latent
natural of the state such as
Ignite coal and clay beds.
North Dakota, Mr.. Marvin said,
may be worse off financially than
some other states because she il
known as a lone crop" state. Diver
%sitication, he declared, is the life savel
of the state. The fact that North Da
kota has been known as a lone crop
state has been one OF the reasons why
investors have been somewhat shy
he said. If there is a failure, all il
lost, while if there is diversiticatio1
that can be only a partial failure
reasoning from an economic stanu'
point. he said that if the farmers ar
interested only in one or two grail
crops they are busy perhaps bu
seven months a year; while If the,
are raising cattle, etc., they r busy
twelve months. From a banker
standpoint, he said, this means thu
state is producing vastly more wealth
under a diversitication system ant
therefore is a better credit risk.
Mr.. Marvin asserted that financia
interests of the east were not opposed
to cooperative marketing. He as
serted that big inanciers favor CO.
operative marketing If sanely carried
on, in hat it means production o.
wealth with less waste. He cited di'
vers.ication of agriculture and CO.
operative marketing as the two big
gest things done in California in re
cent years.
Mr.. Marvin declared hat in hi:
visits in the state he had talked t.
many Nonpartisan league member
and said they voiced confidence in the
Nestos administration. He said the,
generally felt the league could mo-
elect a ticket this year. ~.