The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1922-01-16
NEST0S URGES !
SCHOOL BONDS
AS GOOD BUYS
Tells Representatives Of East
ern Concerns that North Da-
kota is Good Field
is FUNDAMENTALLY SOUND
Hail Warrants Discount Rate
Cut, Administration Turns to
Aid School Districts
Is FUNDAMENTALLY SOUND

Aid School Districts
Tho power Of the state administra-
ton, which was exerted with favor
able results in obtaining a better mar
ket for hail insurance warrants, mas
been turned to the aid Of school dis
tricts Of the state and other sub.
divisions in disposing Of their securl-
ties to out-of-state investors.
Visited by representatives of sew
eral bond houses and financial con-
Germs in connection with the hail war-
rant matter, Governor Nestos has util-
ized the opportunity to impress upon
the financial men that favorable op--
portunities for Investment are offered
by many school districts of the state
who have been unable to market Sc
curities or who have been forced to
market them at san extraordinarily
high rate. In endeavoring to make
good the campaign pledge to redeem
the credit of the state the Governor
and other members Of the admlnistra-
ton have coupled the statewide cam
paign for economy in governmental al
fairs with presentation OF facts re-
garding the fundamental solidity OF
the state to outside investors.
Because many school districts have
had 70 wait too long to obtain funds
from the board of university and
school lands or have had difficulty in
marketing securities in the open mar
ket, Governor Nestos has given espe-
cial attention to aiding the school dis
tricts.
Says State is Sound. |
'T feel that North Dakota is an ex-
ceptiQnally safe place for investment
at this time on account of the fact that
the state is so fundamentally sound
and that even though temporarily en-
barrassed there is no state in the union
that will come back faster and that
those who buy bonds or warrants need
have no fear but that they will prove
one Of the best investments in their
possession" the Governor said today
81 have emphasized this idea in my
talks with representative of various
Financial concerns especially with
reference tc the school districts of
9AS Ame8S rs finantial ina hi representatives. !
who have come to North Dakota in
the last week to make inquiries con-
cerning possibility Of investing money
in the state and have sought confer
ence with the Governor are represent
atives of three large Twin City bond
houses, representatives of Minneap-
oils and st. Paul trust company and
one representative Of ap eastern con-
Germ
. The administration has called upon
the financial concerns investigating
the matter of buying hail warrants in
big lots to submit propositions. Gov
ernor Nestos said today that he ex-
pected to have these propositions in
writing by the end of the week.
While one eastern concern has asked
that certain points be settled in suit
which is to 90 to the supreme court,
there are other concerns who will
have their own lawyers investigate the
legal status of the warrants and are eX-
pected to seek the business without
waiting for the supreme court opinion.
Discounts are Cut.
Several weeks ago a circular issued
by company in which former lead
terested was sent to the Governor
with complaint that the firm was try
ing to buy hail warrants at 20 per
cent discount 1t appears that theJ
firm had circularized the entire state,
and apparently had obtained the
names Of persons to whom hail war;
rants were issued either from the
state hail insurance department or
the state auditors office. Since the
Governor began negotiations for the
sale Of warrants en- bloc this company
has been reducing the discount at
which it will buy warrants until the
or an affiliated concern, Of
fers to buy them at per cent dis
count
Another firm which offered to buy
the warrants at first at 10 per cent
discount and cut the rate of discount
to 8 per cent last week now is Offer
ing to buy warrants issued to per-
sons whose names begin with "A" or
"B'-the first on the list-at 5 1-2
per cent off and all others at 6 1-2 per
cent off. Another Minneapolis firm
is said to be offering to buy warrants
at straight per cent discount CON-
pared to an offer Of 10 per cent few
weeks ago.
Governor Nestos is we'll pleased
with the results Of the campaign to
obtain better sale for the warrants.