The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1922-01-13
PREDICTI0NI IS
MADE 12BANKS
SOON TO REOPEN
Rift Seen in Financial Situation
by Guaranty Fund Members
in Session Here
BOND MEN FLOCK HERE
Many Eastern Financial Men
Now Are in Market For
North Dakota Securities

A rift in the financial situation is
seen by. members Of the Guaranty
Fund Commission and officials of the
state administration as result OF
developments and impending changes.
There is strong prospect Of II CLOSED
banks in the state reopening before
spring, according to members of the
Guaranty Fund Commission, which
concluded two-day session here con-
sidering the affairs of closed banks.
\ The depositors in closed banks are
showing q; strong spirit of coopera-
ton in efforts to reopen number OF
banks. according to Gilbert SEEMING
son, state examiner.
Operations of the War Finance Cor
poration, which have prevented forced
liquidation of many accounts by loan
ing money to banks, has had good
effect. officials say. Many farmers
would have been closed out had it not
been for the operations Of this loan
agency, which is increasing it's busi-
ness within, the state, it is stated by
officials and bankers.
A more liberal bond market has
proved of aid to many counties in the
state. q number disposing of bonds at
excellent prices. Trail county dis
posed Of 5000 of 5 1-2 percent bonds
at $50 premium. South Dakota rural
credits bonds now are selling at a ,4.9O
per cent rate of interest, according to
information Seceivef at the state
treasurer's office
Many Bond Men Here
Numerous bond men ana financial
Representatives of eastern concerns
have been in the state capital confer
ring with officials on the proposal to
obtain sale Of hail warrants in large
lots. It was learned that one bond
house proposed buying all the hail
warrants issued but at rate OF dis
count which was held by the admins
tration greater than the farmers
should bear. A suit has been started
to determine two or three points in
the hail insurance law which 1t Is held
by eastern attorneys must be de-
termined before the hail warrants can
be handled in the same manner as
bonds in the money markets. This
suit, officials say, should have been
started long ago. Had the points in
volved been already determined the
administration would now be in posi-
tion tO make an exceptionally fine sale
of the warrants.
Among the bond men here were:
Paul w. Lowden, of Minneapolis, of
the firm of Lane, Piper and Jaffray;
Mr. Hahn, of the Minnesota Loan and
Trust Company; Mr.. Brown, C. e.
Long, of Splitter, Rorick and Com
pany, Toledo, o.
Reports of outside investors plan !
ming to purchase large tracts Of North
Dakota lands and open them to immi-
grafton, reports that the Federal Farm
Loan bank would resume loaning op-
erations in the spring and general
tendency of outside investors to re-
gard North Dakota in more favor
able light since the election all are
regarded as favorable signs of i'm !
proved financial conditions through
out the ostatedailG
sS Government Doesn't Benefit
The state government itself, how
ever, has not profited by the general
Improvement in conditions. It finds
itself with a bond contract, inherited
from the former administration, which
forces it to pay per cent interest on
real estate bonds.
Decrease of state expenses through |
restricted activities in many depart
ments, lessening of the number of
employees, and the pledges Of coopera-
tion received by Governor Nestos from
many counties in the statewide cam
paign to reduce the tax burden are fav-
orable results for the state govern
ment itself. The bond, contract, the
huge losses which must be sustained
in the state industries, with prospect
of greater loss in the Bank Of North
Dakota's operations than had been
heretofore predicted, and obligation of
the state to fulfill contracts made for
machinery and work at the Grand
Forks mill and elevator at the peak of
prices more than year ago are STUN
bling blocks in the road of the admin
lstratiOn.
ROYAL ARCH IN