The weekly times-record. (Valley City, N.D.) 1912-1922, 1922-10-05
Estate FARM LOAN DEPT.
MAKES ENVIABLE RECORD

the Bank of North Dakota has attain
ed a system and volume of business in
less than ten months of operation un-
der it's present management which
compares favorably to the South Da-
kota rural credits organizations which
has been in operation for six years,
according to a group of South Dakota
people, in Bismarck to study the work
of the Nestos administration.
The South Dakota rural credits or
ganization has actually loaned be-
tween $36,OO0,O00 and $37,000,0O0 in
six years, altho more bonds have been
sold, according to the visitors. The
North Dakota farm loan organization
for the last three months has aver
aged $4,000 per month in loans. The
total amount of loans made in 9k
months operation under the Nestos
administration, from December 1
1921 to Sept. Is, 1922, including loans
in the process of closing is about $4,-
100000, or an average of better than
a half million dollars month. The
average is we'll up with the South Da-
kota average.
The amount Of money loaned by the
department in less than 10 months is
almost twice the amount of money
loaned by the department under non
partisan league management in more
than two years.
Up to September Is, the department
has paid out $3,16O,000 since the Mes
tos administration came into power
and had $1,794,0 900 loans in the pro-
cess Of closing, that is, the papers be-
ing in the hands of the farmer bor-
rowers who could get the money as
quickly as they completed the neces-
sary details. For three months from
July 1, the department has loaned
81 $50, 900. The amount loaned in
lSeptember will, it appears, fall slight
lily below threshing and are delaying
completion of papers in many instan-
ces, but will be between $450,0O0 and
$5O0,OOO.
1t was pointed out here that the
Fargo Courier-News, in commenting
on the latest statement of the Bank
of North Dakota, enormously declar-
! ed that the statement showed the bank
had made farm loans Of $81S,296.56
This amount of money is the revolv-
ing fund, or money loaned by the
bank to the farm loan department for
use between the time payments are
made and bond deliveries are COM
pleted. At one time the revolving
fund was S1,100,0O0.
Praised by S. D. Visitors
Praise was given for the system
used in the farm loan department by
the South Dakota visitors, particular
lily the elaborate system of getting in
formation concerning farm value. The
visitors stated that the North Dakota
departments system was far more
complete than the South Dakota sys-
tenn.
At the same time a comparison of
the South Dakota rural credits law
under which the North Dakota depart
ment operates revealed, in the opin-
ion of officials, defects in the North
Dakota law which slows up the max
ing of loans.
Under the South Dakota system
farm loan bonds are sold, the money
paid over and the loans made. I'm,
der the North Dakota system mort.
cages are deposited with the state
treasurer in blocks Of 100000 an alb.
stract and summary of the mortga
ges is sent to Chicago for approval Of
bond attorney and the money paid
Because of delay in getting this ap
prevail of Chicago bond attorneys piece
meal it is necessary to have the huge
revolving fund for the department
which has been around S9OO,OOO tt
100000 for several months, ant
adds the expense Of the interest OF
this amount of money to the operation
of the department.
In South Dakota larger loans ar
permitted, which also increases tn
advantage of the South Dakota or
ganization in a comparison as to tn
speed in making loans. The averag
amount of the loans made by tn
North Dakota department is $780,
900, the theory having been that i
the situation of the last few month
. with so many applications on hane
, as many citizens and practically tn
smaller farmers, should be served a
possible.