Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-01-18

The Minnesota Loan and Trust
company agrees to lessen the discount
rate one-half per cent per month be-
ginning in February, so that in June
they will pay par value, for warrants
Representatives Of that company said
however, that the entire deal must be
closed by June Is, no warrants to be
handled after that date.
The agreement followed submission
of propositions to purchase warrants
by half dozen Twin City and eastern
financial concerns.
After a long conference between
Governor Nestos and Attorney General
johnson of the Industrial commission,
and Commissioner Of Insurance s. A.
Olsness, the two propositions above
named were accepted as the best sub
nlitted.
Sold at Great Discount.
Farmers have sold 1921 hail war
rants at discounts ranging as high as
20 per cent. Negotiations were begun
recently by the state administration
with view to reducing this discount
which Governar Nestos declared, was
far more than the farmers should be
called rupen to pay SitacA, it .MaSs an :;
fSnonnced these egot1attSnSswere un
der way the discount. rate had fallen
to 8 per cent. Il
Farmers whs wish to Immediately
obtain cash for warrants will be able
to sell them at 81 per cent, the total
| amount not to exceed 100000. These
| warrants to be assembled in the farm
loan department of the Bank of North
! Dakota for delivery to an unnamed
, North Dakota purchaser.
The Plan For Sales.
The plan to handle sales to the
Minnesota Loan and Trust company
when legal requirements are complet-
ed, is as follows: @
Warrants will be delivered, probably
| to the industrial commission. The in
dustrial commission will deposit the
warrants with the state treasurer and
issue debentures in $4,000 and $780,
600 amounts, which the Minnesota
Loan and Trust company will pur-
chase at per cent discount, the farm
er then receiving the amount Of his
| hail warrants less two per cent. The
Trust company agrees to pay all ex-
penses of printing the debentures and
other exl .nse of handling out of the
2 per cent discount, it was said.
I The 1920 hail warrants, some of
which are unpaid. are not included in
the agreement as the administration
believes they all will be retired with
the payment Of taxes in the spring.
The> 1921 hail warrants may run for
a year or more.
Ncstos Believes it Good Deal,
| Governor Nestos said today he be-
lieved that the agreement was an ex-
ceptionally good one.
when / discovered shortly after
taking office that discount from 10 to
| 20 per cent was demanded on these
/ warrants, I felt that it was an outrage
and since that time have been con-
ferring with half a dozen different A.
nancial institutions to have them take
these warrants or debentures oased
! upon them for near par" the governor
said.
1.-THE offer we have just had from a
| financier. of our state to purchase
| l$2OO,OO0 of warrants at 81 per cent
| Of the face value is the best offer we
| have had on the warrants themselves.
1.-THE offer Of the Minnesota Loan
and Trust company to handle the war
rants after February first at SO per
| cent of the face value in exchange for
1 the state debentures at par is the best
dabenture offer we have had as a re-
| suit Of this selling campaign, and after
| settling Of a number of questions of
law and procedure we will be in ex-
! cellent shape to handle all future is
!, sues of hail warrants with the chance
that they may then be handled at
i par" s
I Attorney General johnson went
thoroughly into the legal phases OF the
question with the firms negotiating for
I the warrants, and his opinion satisfied
4 them on many points. Mr.. Johnson
plans to clear up all legal points that
| might be raised in connection with the
| hail warrants in the future SO that a
future stable market can be created
| for them e. ,aE EF