The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1927-07-12
NDEP ENDENfS SAY YES LEACUERS NO
! ON TAX LEVY FOR REAL ESTATE BONDS

a. lcI Lie HCAJ primary eleCClON.~
The state already has levied ST.
OO0, 900 to pay interest on state real
estate bonds and Nonpartisan lead
ers are frank TO admit that they do
not wish to levy more. The farm
loan business should be self -sus-
tanning and would be opulently so
were it not for the crop failure last
year, they say. With prospects of
a bumper crop in all parts Of the
state they expect collections on
farm loans to jump RAPIDLY and put
the fund in good condition.
Representatives Of the other side
are not so optimistic. Most of the
people having state loans have
other bills, they contend, and the
natural tendency is to pay those
items having a high rate of inter-
est first. AS a result the debt
owed the state will be placed last
on the list of most Of its borrowers,
the very fact that the state inter-
est rate is comparatively low oper-
ating to delay payment.
On July l the delinquent pay
ments on real estate loans totailed
well over $2,OOO,OOO. For a part of
that sum the state has some 100000
acres of land, obtained through
mortgage foreclosures. At present
the state is acquiring more land
about as fast as it sells what it
already has. With prospective bet
ter conditions it is hoped that the
amount Of land sold soon will take
a big jump while the land acquired
by foreclosure will be reduced to
nothing.
The Nonpartisans are counting
on the collection of much of the
money now delinquent. The hide
pendents are hopeful but not conf
dent.
Both Say Il Told You So
AS the argument stands now both
sides are saying II told you So"
their comment barking back to the
Of the state board of equal
ization last year.
AT that time G.. r. Green, man.
ager Of the bank, estimated that
interest collections on farm loans
this year would fail to meet the
state obligation to pay interest on
it's bonds by 1882, 1860. Deduct
ing $l4O,OOO which had been car
ried in a surplus fund as conteal-
plated when the state went into the
farm loan business, he placed the
net shortage in the fund ut $685.
1860. The state board of equali-
cation rejected his recommendation
FOR a tax levy and the figures now
show the interest fund $239,OOO
short.
The 81 told you so" Of the Nom
partisans comes from their claim
hat they were nearer right than
he manager Of the bank. The
Il told you SO" of the Independents
arises from the fact that shortage
existed on July ! if all the
interest due were paid on that date.
The Independents further bolster
heir claim by pointing out that
Green's figures were intended to
'over the period until January /,
1928, and that the shortage may
each the amount which he fixed
~ that time.
Under the law the state treas
lrer carries all his real estate bond ,
payment money in a fund known
IS the bond payment fund and has
he right to use money collected to !.
etire the bonds in paying interest. |
'or the sake Of convenience in de-
ermining the status Of the fund
With regard to the amounts avail
bic for use in paying interest and .
or amortizing the bonds, he keeps
eparate accounts of these items {
ut all of the money remains in one +
und and can be used for either
An attempt to change this condi-
on was made at the last session
the legislature when a bill was
assed requiring the treasurer to
eep bond interest and bond re- J
rement money in separate funds 0
nd making it a felony for him to ii
'e bond amortization money to pay d
lterest. ly
The bill passed both houses of
le legislature but was vetoed by
le governor who charged that it
as an attempt to create by stat v
,e a shortage in the fund.