The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1922-02-18
TELEGRAM SAYS
BOND LAWYERS
APPROVE PLAN
Financial Houses Wire They Will
Buy Warrants at SO Cents
on Dollar
TO BE HANDLED HERE
Purchase of Warrants To Be
Made Through First National
Bank of Bismarck
TO BE HANDLED HERE

The deal for sale of 1921 hail
warrants of farmers Of North
Dakota was completed today.
Governor R. A. Nestos, who
instituted negotiations several
weeks ago to lessen the discount
rate on hail warrants, was ad-
vised in a telegram from w. 0.
Horne, Of the Minnesota Loan
and Trust Company, that bond
attorneys in Chicago had ap-
proved the contract entered into
by which the warrants can be
sold.
The First National Bank of
Bismarck received instructions
to Immediately begin purchase
of warrants at the agreed price
of SO per cent Of face value in
February.
Farmers who desire to sell their
1921 hail warrants Immediately may
send their warrants direct to the
First National of Bismarck. John de
Jong, local representative of Mlnne-
sofa Loan and Trust company and
Lane. Piper and Jaffray, Minneapolis
houses, through whom the deal was
made, will check and list the war
rants, which are to be deposited with
thes state treasurer in trust. 1t was
said by bank officials that check for
the warrants could be mailed prob
ably within week after they are re-
ceived.
To Purchase A1l Offered.
The announcement of the readiness
to begin purchase of the warrants
marks the elimination Of the long
and tedious negotiations of the state
administration. The financial houses
will purchase all the 1921 hail war
rants offered. There we're about 3d.
500, 900 of 1921 hail warrants issued.
In the first sale made by the state
administration former Governor L. b.
Hanna purchased about 100000 OF
warrants at 81 per cent of face value.
Some warrants had already been pur-
chased at discounts as high as 20 per
cent.
The sale of the warrants is expect
ed to put between $2,000,O0O and 3d.
600. 900 in the hands of farmers Of the
state at saving of 100000 to $780,
900 over previous discount rates. The
money will enable many farmers to
pay delinquent taxes, take up obliga-
tions or provide a fund with which
to put in the 1922 crop.
Wheat Contract Provides.
The contract through which the
warrants are sold provides that the
financial houses shall buy the war
rants, which shall be deposited in
trust with the state treasurer. The
financial houses then loan the Indus
trial Commission, composed OF Gov
ernor Nestos, Attorney General john
son and Commissioner of Agriculture
and Labor Kitchen, money with which
to purchase the warrants from them.
The Industrial Commission will issue
short-time notes which will be sold in
the eastern financial markets.
It was necessary to test the con-
tract in the supreme court and OBJ
tain a favorable opinion Of eastern
bond attorneys before the deal could
be finally be put through.
Ends High Discounts.
One Of the results of the sale, in
addition to the saving caused by the
lessening of the discount rates, in the
view of Governor Nestos, is that a
future market is created for North
Dakota hail warrants in the east and
the day of the big discounts is thing
of the past.
Under the contract the price Of the
warrants advances 1-2 per cent each
month until par value is reached IN
June.
!