Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-01-30
P|UTSSYST|E|M
NTOFARML0AN
DEPARTMENT
Chance of Error or Favorit-
ism Minimized by De-
Nault's New Methods.

- AN~V AvA~SAA~SSe ,.,
Bismarck, N. D., Jan. 30.-Numer-
Gus safeguards are being thrown
around the conduct of the farm loan
business of the Bank Of North Dakota
by w. B. Default, manager Of the
farm loan department, 70 prevent the
making of political loans, many of
which have proved disastrous to the
business as conducted by the former
administration. >
The system devised by Mr.. Default
for the conduct OF the business is such
that various phases of the loaning
business are handled without confu-
sion and with lessened chance for err
ror. The entire second floor of the
bank building, has been given over to
the farm loan department. There Is
no confusion in the department. The
duty of each employe is closely de-
fined and there is no overlapping.
There o are five appraisers ready
to start work. The head of the ap-
pratsal force, while a resident Of
North Dakota, has been employed by
the Federal Farm Loan bank and is
only loaned" to North Dakota. He
has no political interest in any loans
n his selection is held one of the
safeguards against the making of po-
litical loans or unfair a%ppraisals.
: A great ma Of information and
detail is necessary in the conduct Of
the business of this department. Man.
ager Default is making a complete
survey OF each county, gathering ac-
curate information Of the various
communities in each county, the char
acter of the land in the townships,
the amount of loans that has been
heretofore made by other companies,
necessities Of Zach application as to
the expiration of redemption from
foreclosure; the safety limit for loans.
Maps Of each county are being secur-
ed. Much general information also has
been obtained by Manager Default
from a questionable sent to banks.
Bankers Cooperate.
The cooperation received from
bankers, who perhaps are the best
judges of land values in their com
munities, is gratifying to Mr.. De-
Nault. Their information. as to land
values in their respective, commune
ties is being indexed on a comprehen-
sive card system, together with other
information. Thus a complete record
OF the character of land and general
conditions In each community in the
state is created. which will be of in
value in the future conduct
or the business. The fact that there
was no such record as this in the de-
partment when the new administra-
tion came into power has necessitated
the building up Of the farm loan de-
partner from the very ground.
Inc numbe of loan applications
from each county is recorded in a spe-
clai record book, containing all neces-
sarv nlormatio regarding each loan.
dor ready reference. Up to January
20 the most applications in any one
county had come from Mclean coun-
~, there being 81 applications aegre.
eating $155,950. Only one u n
Billings. was not represented in this
list and there was but one application
from Trail county.
Havc Check on Appraisers,
Inc Information gathered from
bankers and others n carefully re-
corded In the bank is an additional
check upon the work Of appraisers of
the department. Their special reDorts
are to be compared closely with tho
statistical information. The possibil-
lty OF making loans on too, high an
pralsals is pretty we'll eliminated \by
the elaborate checking system.
When an application comes. into
fhe bank it goes first to a record
"iork. Certain information is record
ed, n 1t is passed on to others for
Ao eAS I Title, "netner or not
II Is IN accordance with the regula-
tlons. There is definite division. Of
work and complete filing. systems in
oach case so that the application can
not only be handled quickly hut every
PIT OF information about it determined
and placed where 1t can be found on
a moments notice. -
from requests to bankers
Tor information. as well as many let.
ters from individuals. contain an ex-
preston Of loyalty to ~ithe state and
$50 = feeling of relief that the money
or the taxpayers represented in tho
real es'ate bond sales will be carefully
ana wisely invested; that the state will
.ot'p"! y the business of making loans
for political purposes: that the loanc
VIII be fairly distributed, and made
only to bona fidc residents and to
farmers who own their own land
'ra: ner thon leases that the money
VIII be distributed in farm loans to
give necessary relief to the greatest
lumber OF farm owners in the present
emergency and not play favorites by
excessive loans to any one person.
$50 Requests In rs Days.
The total number of farm loans
received and requested from Januayy
1922 to January rs. numbered $50,
the amount Of loans asked for 81 POS
l-zoo The great volume of business
makes 1t impossible to handle each
request Immediately, but with the sys-
'tem evolved 1T is expected by Manager
Default that when the bond sale.
money has become available there viii
be loans made very steadily s