Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-01-13
TWELVECLOSED !.
BANKS EXPECTED
T0BE RE0PENED
Guaranty Fund Commission
Sees Rift in the Present
Financial Clouds.

Bismarck, N. D.. Jan. 13.-A rift in
ne financial situation Is seen by
members of the Guaranty Fund COM
missaon and officials Of the state adj
m%inistration as a result Of Develop
ments~and impending changes. -
There IL strong prospect of IL closed
banks In the state reopening before
spring, according to members of the
guaranty fund commission, which
concluded a two-day session here con-
slderfng the affairs OF closed banks.
The ~depositors in closed banks are
showing a strong spirit Of co-opera-
ton in efforts to reopen a number OF
banks, according to. Gilbert Seming-
son, state examiner.
Operations Of the War Finance COZ.
aoration, which have prevented forced
OF many. accounts by loan
ing money to banks, has had a goo1
effect, officials say. Many farmers
would have been closed out had it
not been for the operations of thu
loan agency, which Is increasing tn
business within the. state, 1t is stated.
by officials and bankers. <
Bond Market Improved.
A more liberal bond market has
proved of aid to many counties in the
state, a number disposing Of bonds at
excellent prices. Trail county dispos-
ed Of $4,000 Of 5h per cent bonds
at $50 premium. South Dakota rural
credits bonds now are selling at a 4.90
per cent rate OF interest, according to
information received at the state capt.
toll.
Numerous bond men and financial
representatives OF. eastern concerns
have bccn in the state capital con-
ferring with Officials on the PROPOSAL
to obtain sale Of hail warrants in large
lots. 1t was learned hat one bond
house proposed buying all the hail
warrants issued but at a rate of dis
count whtchs was held by the adminis-
tration to be greater than the farm
ers should bear. A suit has been start
cd to determine two or three points
in the hall insurance law which it is
held b yeastetn attorneys must be de-
termined before the hail warrants can
be handled in the same manner as
ponds in the money markets. This
suit, officials say would have been
unnecessary had the point involved
been already determined. and, the, adj
m"inistration would now be in position
to make an exceptionally fine sale of
the warrants
Immigration Being Pushed.
Reports of outside Investors plan-
ming to purchase large tracts Of North
Dakota lands and open them to in1ni-
grafton, reports that the Federal Farm
bank would resume loaning operations
In the spring and a general tendency
Of outside investors to regard North
Dakota. in Il more favorable light
since the election all are regarded as
favorable signs-of improved financial
conditions throughout the state. Co..
The state government itself. how
ever. has not profted by the general
improvement in. conditions 1t finds
itself with a bond contract, inherited
from the former administration, which
forces it to pay s per: cent interest
on real estate bonds whereas South
Dakota is enabled to sell them at 4.90
at this time. \.
an. Obstacles Inherited.
Decrease of state expenses through
restricted activities in many depart
employees and the pledges OF co-opera-
ton received by Governor Nestos' from
many counties in the statewide cam
paign to reduce the tax. burden are
favorable. results for the state govern
ment itself. The bond contract the
huge losses which must be sustained
in the state industries, with prospect
Of a 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 a veal ago are
stumbling blocks in the road of the
adYninistra tiOn.