The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-05-24
STATE CREDIT
IS RESTORED,
SAYS NES'T0S
Governor, in Speech at Buff
falo, Says Improvement Is
Shown by Bond Sales
FIGURES ARE CITED
Heavy Premiums Paid For
Bonds Issued Since Admin
iStratiOn Came to Power

Buffalo, n. d., May Ex-Governor
r. A. Nestos, speaking here this
afternoon, declared that his admi-
nistration had made good in it's en-
deavOr to better the credit of the
state. The Governor was answer
ing assertions Of the opposition that
the administration had failed to do
this.
The manner in which the former
admin istration had conducted She
business of the state, and their de-
clared purpose to make the new in
dustrial experiments to be conduct
ted in this state so extensive as to
constitute, in effect, an Industrial
and economic revolution in North
Dakota, has resulted in the loss of
the good will and confidence of
most of the people of other states
and had wholly destroyed the credit
of the state of North Dakota and
it's citizens so, that despite an ex-
tensive campaign to sell our state
bonds where in the former admin
stration spent S266, 1l9.47 of the de-
positors' money in salaries, adver
Using, discounts, etc. they were un
able to make legal sale of these
bonds until after their adnnistra-
ton had been defeated at the Re-
call election, he said. Then, and
only a few days before the new ad-
ministration took office, they closed
a contract for the sale of all the
bonds we were authorized to issue,
practically all of them to draw 6
percent interest. We felt that such
an interest charge was unwarrant-
| able and finally succeeded in getting
the Spitzer-Rorick Company, who
were the purchasers of these bonds,
to cancel in part the contract al
ready entered into with the former
administration, permitting US to
withdraw from the provisions Of the
contract s4,50O,000 of the farm loan
/ bonds, and $1,100,0OO of the mill and
, elevator bonds, which we have since
i sold on competitive bids and with
out cost to the state of North Da-
; kota except a few cents for post
! age. Figuring the premiums received
and the saving in interest rate mere
ly on the $5,6O0,O00 withdrawn as
above stated, and compromising it
till the maturity of the bonds at
| percent interest only, the saving to
the state from this single act alone
of the present administration was
$2,271 ,936.OS. Figuring the bonds
subsequently issued and sold, on
the same basis, additional millions
have been saved to the state as
compared with sale Of the same
| bonds by the prior administration.
"One purpose of the present ad-
minstration has been to regain for
the state of North Dakota and it's
! people the confidence and good will
of the citizenship of the othe - states
| of the union and also to rebuild and
establish the credit of the state of
North Dakota. In the accomplish
ment of this purpose ] feel that
the administration has met with a
very fair degree of success. We
have regained the good will and res
pect Of these people to a large ex-
tent and as far as the state is con-
cerned the credit has been largely
re-established. We have seen how
under the former administration
the state was unable to sell even 6
percent bonds, except at discount
until after the Recall election; and
how the same class of bonds since
that time has been issued at from
to 1-2 percent interest and sold
in most cases at very fine pre-
MUM. This changed condition has
been brot about by a bushes like
administration of the affairs of the
state and by bringing to the leaders
of the central states and the East q
message giving the facts about
North Dakota, its wonderful resour-
ces ,, its economic conditions, and
the splendid character of it's citi-
zenship. We need to continue this
campaign in order to retain and
improve the credit of the state anG
for the purpose of establishing
again market for the farm mort.
cages and other securities of oul
people at a lower rate of interest.
Whereas the Nonpartisan admi.
nistration paid out over 5000, 900 ir
discounts on bonds, the Nestos ad
ministration has received in pre-
miums on bond issues total Of
$323,983, an examination of the
bond records discloses, according
to independents; here.
Premiums on bond sales under
the present administration are list
eds as follows:
May, 1922, $1,s0O,OoO mill ant
elevator S 1-2 percent bonds, pre-
MUM paid state $4,000!
January Is, 1923, $1,650,O00 rea
estate Ia percent bonds, premium
paid $168,4O5.
I October II, 1929, $35O,OOO real es
tate 5 1-2 percent bonds, premium
paid $4,000.
| August /, 1928, $1.600,0OO real cs
tate 5 IA percent bonds, premium
paid $1,000. e
September II, 1923, 100000 rea
estate Ia percent bonds, premium
paid $9,O45.
November "a, 1923, $4,000 rea
estate percent bonds, premium
paid $10,440.
April 2s; 1924 $2,5oo,oOo real es
tate bonds, s and Is 1-4t perceh
bonds, premium paid $1,785.
!. 4 October, 0, 1926 s1,O090Oo mill