The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-01-08
BOTH HOUSES READYT0JUMP
INT0LEGISLATIYEGRINDWI WITH
ORGANIZATION NOW COMPLETE

thereon, to provide funds with which
to build it. The cost Of the mill
finally will be about $2,600,00O 90.
Bonds auth or zed are for So 100000.
The bond attorneys have said no
more bonds could be issued on the
mill mortgage, and there is question
whether the 100000 alone the build
ing cost, could be used as capital
stock
The view of the trainers of the
law was that the Bank Of North Da-
kota should finance the mill. The law
provides that any profits shall go
to bond interest and sinking funds,
and beyond that to build other mills.
There is no provision for working
surplus.
Say Bank Can't Do It
Administration officials say it is
impossible for the Bank Of North
Dakota in its present state to finance
the mill operation.
Some Nonpartisans say the solu-
tion is to repeal the initiated law
permitting counties, cities, school
districts to deposit money outs de
the Bank of North Dakota and as
semble all public funds in the bank
again.
This is answered by "a declaration
that the withdrawal of public funds
comes at such tine and in such
volume that the Bank of North Da-
kota could not be depended upon to
be in pos ton to meet the mills fl
nancial requirements at all times.
Also that it is dangerous banking
principle to assume one account the
financing, of such a big operation
as the mill
Further, it is argued; the bank
would be crippled IN the operation
of the farm loan department., would
not be in position to loan to state
institutions when they need funds
and would not be in position in the
future to handle hail or other war
rants. The bank now has 1888 900
loaned to the farm loan department.
Must Keep Up Bank
This latter condition cannot be OBJ
waited, it is said. The South Dakota
rural credits law provides that bonds
may be issued and farm loans then
made. The North Dakota Constitu-
ton provides that bonds can only be
issued upon real estate mortgages
the loans must be made, mortga-
ges executed and other details re-
curing time performed before the
h1 IL
farm loan department, doing a bust
ness of 100000 to 100000 a month,
has found revolving fund of $780,
600 to $1,0O0,O0O necessary. The
only agency it can depend on is the
bank itself.
The bonded debt limit of the state,
except upon property mortgages, is
$2,O00,000. This limit has been ach.
ed m the bank capital stock.
Another Plan Suggested
There is another plan suggested
for raising money for working cap
ital for the Grand Forks mill, that
of borrowing money on the personal
property such as -four, etc. This, it
is argued, is risky and unsatisfac-
tory security, since it is constantly
losing it's identity.
The statement of the Bank of
North Dakota as Of Dec. 20, 1922 is
pointed to as showing the impossi-
bility of depending upon the bank
to finance the mill, although the
bank did make possible the starting
of the mill by providing a credit of
100000 for mill and elevator oper>
ating account.
The resources of the bank, in
Guiding deficit Of $142,664.61, are
placed at $9,96O,914.34.
The following funds, totalling 3d.
824,372.14, are regarded as more or
less "frozen."