The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-10-16

History Roaming i'm South Dakota

History Reaping in South Dakota
While actual peculations are absent in North
Dakotas administration Of rural credits and the
present administration Of the department cautious
and conservative this states experience is much
the that OF South Dakota. In the heyday
Of state patcrnasm, loans were made along polit'
zeal lines. Appraiscment liberal and political.
Field actually wrote into headquarters that
the applicant staunch supporter of the ad-
mnisration then in power and that it would be
good politics to approve the loan. This done
in many instances
This states rural Cerdts department has had
many of its customers default. Farm after farm has
reverted to the state upon which money was loaned
in excess OF the market value OF the land
South Dakota is going through worse OK
perience. Shortages from maadministration OF
the funds have resulted in addition 4.3OS
patrons who have defaulted. To date the South
Dakota Credit Board has issued 1000 loans.
OF these less than 4.30S in default and 46j
under foreclosure or classed as hopeless. The
states loss cannot be determined until after liquida
ton, but the taxpayers, principally farmers are
holding the sack. The state is paying interest on
$47o0OOOO worth of real estate bonds This goes to
show that the farmer, on the surface at least,
thought he getting lower rate Of interest than
the money market afforded him. When he comes to
add the additional tax load, he will discover that
it is exceedingly hard in cold bloodcd business
proposition to get something for nothing from
paternalistc government
Although North Dakotas management of the rural
credits department is conservative now and
nearly nonpolitical it be- the danger is ever
present that political changes may make the man
agement extremely radical and political. AS long
the state stays in business, the menace will
remain. North DakOtas experience in state owner
ship far losses are concerned has been
than South Dakota's, for must add to our
losses in the rural credit farm loan department,
the losses OF the state creamery at Werner, the
Home Building mess and also the state mill and ele-
vator deficits of the Grand Forks and Drake mills.
The losses at the mill growing less because
the operation is not grand a scale. Expert
mental features are being enlarged upon. but shift:
in political personnel might let the bars down for
orgy of spending.
Various political factions all less
responsible for present conditions. That day is not
far distant when the people of North Dakota must
wipe out the 1t probably cannot be done by
any legislature. Two-thirds of the Legislature must
favor repeal of the industrial enactments. Political
factions in the past within the Republican and Dem
ocratic parties have not been courageous enough to
out boldly upon platform to scrap the whole
industrial program In the place of courage we
have had eXpediency and compromise.
North Dakota is engaged in great movement to
attract settlers and capital to the state. 1t is
worthy venture and should be supported but if sue
is to be lasting North Dakota's house must be
put in order Money will come here to work
in the upbuilding OF the state as long certain
laws remains upon our statute books. Capital is
timid and those who control it scan the tax rates
and investigate the scheme OF government
program backed by the people of North
Dakota, its farmers and business men, to
wipe out the whole Industrial scheme. and put the
state back where it before paernalism affected
its credit in the outside world should be attractive
to the voters of the state.
There are two means before the people of North
Dakota to wipe the slate: constitutional conven-
ton or the initiative. If the proper end could be
accomplished, the people probably would not crti-
cize the means used.
Politics should be eliminated as much as possible
in movement to restore economic soundness to the
state government North Dakota has experimental
long enough to demonstrate that the various phases
Of state ownership unsound, undesirable from
every viewpoint illogical well egregious fail
ures.
Thousands of North Dakotans heartily sick
of the whole business. They are waiting for an
opportunity to bring the state back to the old con
stitutional safeguards under which North Dakota
~ made wonderful growth.
There seems to be no imminent danger that the
socialistic program will be enlarged in scope, but
as long as the power to plunge the state into debt
for business ventures is legally present, settlers
and capital will not be eager to avail themselves
OF this states wonderful resources.
FLORIDA for instance has made it attractive TO
capital and settlers There is state income tax an
other confiscatory taxes aimed at capital have bee
repealed or revised. As result so much new
wealth has gone into that state that Legitimate take
fuzaish adequate. mouex afIay lasitimata fapc