The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1930-11-21
Says OF
NORTHWEST STATES
. PUSHING FORWARD
Land Bank Executive Says They
Have Shown Stamina Need
ed to Garry On

Fargo, N. D., Nov. 2l.-"In spite OF
the many handicaps that have been
placed in the path of northwest farm
ers during the past few years and
with the added burdens that the rel
atively low prices for all farm COM
modities have brought during the past
several months, it is wen more ap-
parent than ever before that the
farmers in this area have the will
and the stamina to carry on" George
S. Gordhammer, treasurer of the Fed
eral Land bank, st. Paul, declared
here today. He came to Fargo to at
tend the annual land owners confer
ence, addressing that group on We'd
nesday.
THAT the farmers of North Dakota
are making more of an effort than
they ever have before to meet their
farm mortgage obligations is evil
denced by the fact that the collec-
tions of our institution in that state,
generally speaking, during the first
10 months of this year have been
just as good as they were during the
same period of 1929, and 1929 showed
considerable improvement over 1928"
Gordhammer said.
Owned by Borrowers
This cooperative farm credit in
stitution, all of the stock of which
is owned by the National Farm Loan
associations operating in this district
and in turn by the borrowers them
selves who own the capital stock of
the National Farm Loan association,
is still looked upon in some quarters
as a government institution and one
that loans government funds. It Is,
of course, we'll known to all those
who are entirely familiar with the
system, that this institution procures
its funds for the making of first
mortgage farm loans by selling to the
public bonds which are secured by the
first mortgages that are given to it
by its borrowers. Not being a gov
eminent institution, it does not en-
JOY the use of government funds Of
any kind and the only source of in
come which it has for the purpose of
meeting interest payments maturing
periodically during the year on its
outstanding bonds is from the pay
ment of interest by its borrowers
upon outstanding loans. This meth
cd of providing funds for making first
mortgage loans naturally precludeS
any policy in the handling of this
business other than one that Is backed
by sound business principles.
Cites First Duty
THE vast majority of all borrowers
in the system are meeting their obi
cations promptly as agreed upon and
it is unfair on the part Of those who
are delinquent to penalize those who
are prompt in meeting their obliga-
tons by expecting them to permit
undue indulgence to q part of the
borrowers in taking care of their OBJ
legations. It should be the first duty,
not only Of the borrower but of that
borrowers other creditors as well, to
see that his interest and taxes are
paid promptly in order that his first
mortgage loan may at all times be
kept in good standing and that his
home and farm which produces his in
come is at all times kept intact for
the benefit, not only of himself and
his family, but for his other creditors,
if there be any, as well. This can be
accomplished only through the whole
hearted cooperation Of all interested
parties.
with the general condition that
has confronted agriculture in this
area for the past several years, it is,
/ believe. the policy and practice OF
practically all institutions providing
this type of credit to grant any rea-
Sonable indulgence based upon sound
business principles. In the pursuance
OF such a policy, it is Of course neces.
sary that each individual case be
judged upon its own merits as q
policy of undue laxity would only tend