The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-05-01
jHANGES URGED
IN FARM LOAN /
LAW OF STATE
'ustrial Commission, in Re-
art, Suggests Issuance
aOf Bonds in Advance
'DTAL BONDS SHOWN
te Industrial Commission
Has Issued $18,509,OOO of
Bonds, Report Shows

1erates be amended either by the
ters or the legislature to facilitate
.e making of loans and to obtain
etter prices for bonds, is made by
ie State Industrial Commission in
IS, annual report.
Under the present real estate loan
t, the commissions report says,
inds can be issued only after loans
e, completed and assigned to the
ate treasurer in lots of not less
+, N 100000.
1t has been found" the report
rs, "that bonds cannot be sold adj
ntageously in small blocks, and
IT to secure good bids the sales
uld be for at least two million
lars. This necessitates accum
ating at least a million dollars in
iortgages before it is safe to hold
/ ale, in order to make possible the
very of $2,0oO,0OO within rea-
,ble time after the sale. Our
{ 'rience shows that to do loan,
= ,ss of from $5OO,OOO to .$6OO,O 900
J 18th, requires revolving fund
Dut $2,500,000 to keep the bust
going. The only funds available
| his purpose are those on dept sit
I Bank of North Dakota and as
fluctuate suddenly and greatly,
are times of the year when it
= mes almost impossible to main
/ the Wlume of loans on account
he lack of funds. Last summer
became necessary to borrow about
zee quarters of million dollars in
{ Ter to continue making a fair vol
e of farm loans. Unfortunately,
T n Dakota is smallest during the
! mer when the farm loan business
be most conveniently and safely
\ He'd and when the volume of
should be largest"
Need For Change
hese conditions" the report con-
: es, "have caused the Industrial
! mission to feel that it might be
isable, IN order to promote the
ltinued and increased service of
Rural Credit department, to
end the constitution so as to pro-
that farm loan bonds could be
ted and sold in convenient blocks
( .dvance of making the loans, as
{ ow being done for the rural cred
"a departments of South Dakota and
innesota. This would enable the
4 ustrial Commission to take ad
I age of favorable market condi-
/ s in which to offeK bonds for sale,
cad of being forced to sell re-
less Of market conditions when
ge volume of loans accumulates.
! loubt more favorable interest
l. could be secured and the ele.
Elt of speculation now present
Md be largely eliminated, as the
est rate on the loans would not
to be fixed until we knew the
interest rate on the bonds sold.
matter should have the serious
liberation Of our people and be
upon in conformity with their
IS either at the fall election or
de next session of the legisla-
Bonds Issued
mong the outstanding points of
rmation given in the commits
Is report are:
pnd issues for state enterprises
$2,000,O0O capital stock bonds
he Bank of North Dakota; $3,OOO,-
mill and elevator construction
Is: $1,O0O,0G0 mill and elevator
hting bonds for wheat purchase;
farm loan bonds issued by the
strial Commission total S12,509,-
the total amount of bonds issued
Industrial Commission being
100000.
the total amount Of real estate
s issued, $2,50O,000 were under
rmer administration.
nidation of the Bank of North
IVA was less in 1928 than in 1922,
fAhly small section of the state
" iced sufficient net crop returns
Ake liquidation of old indebted
Epossible,' and the earning pow
the bank decreased.
average farm loan made in
Twas $2,29S.13, or 1913 per acre.
u operating loss of the farm
Department in 1923 was $46,543.
net loss of the Drake flour
IN January l, 1924, was $685.
net operating loss Of the
Forks mill on January l, 1924;
;78,425.47 and interest charges
,slsreciation totalled $299, ,S2l .O4.
pme Building Association as
dayAx 1928, shows losses of
returf\ nd the loss will increase
tlement of house ac-
FA - /
A. Helko the state, mill and
rived yesta Forks:
in the cityd, Of course, that
TRAM during the first
AZ r L. HircAtion work was
& Me city on bfnterfering with
machinery and
FRd tested, when
Mrs. A. Il. All found tc be
ing a few dayl were organic
pnly the force
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