Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1931-05-14
WORK OF RURAL
CREDIT BUREAU
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funds which were to be used for the
relief of agriculture might be pro-
tected.
The legislature provided that the
bureau should be in charge of COM
mission of three men, two of whom
were to be appointed by the governor,
namely, the chairman and the secre-
tary, and one, an assistant attorney
general, to be appointed by the at
torney general of the state of Mime
sofa. Certain percentages of appraised
valuations were established. The
necessary mechanics for making and
closing loans were provided by law,
and a fund of forty million dollars
was placed at the disposal of this
commission to carry out the intent
of the law.
The purpose of the bill, as expressed
in it's first paragraph is 'to foster and
encourage agriculture, dairying and
livestock raising in Minnesota and the
development and Improvement of farm
lands" 1t was not the intention of
this law that the state should buy
farms, nor was it the intention of the
law that this money contributed by all
the taxpayers should be used for the
purpose of aiding and assisting other
groups of men or organizations, but
the funds were to be used solely for
the relief of agriculture.
Security Inadequate.
In 1925, or less than two years after
the bureau was organized, thirty
seven million dollars had been loaned
out, very large part of it on made
quate security. A Senate investiga-
ton was made and the rural credit
law was amended, making provision
for an additional appraisal by dis
trict appraiser. The percentage of
the appraised valuation which was to
be considered in making loans was
reduced and some additional changes
were made, all with the intention of
better protecting the interests of the
taxpayers and enabling the bureau
to work on a more conservative basis.
Since then business has been trans
acted by the bureau on more con-
sentative basis, and the additional
thirty million dollars authorized by
the 1925 legislature has not yet been
entirely used. There is now approx
mately thirteen million dollars still
at the disposal of the bureau The
bureau has regularly made loans and
has been an active competitor in the
mortgage business.
At a very early date the bureau
commenced to foreclose mortgages
and acquire farms which meant that
in addition to loaning money it was
also necessary to manage the land
acquired by the state, making ar
rangements for reconstructing build
ings that had become dilapidated, cul-
tivate land that had been permitted
to become infested with weeds, pay
ditch liens that had accumulated
against some of it's farms and. at
least, try to sell those farms that
could be sold.
The bureau has spent considerably
over half million dollars to recon-
struct buildings and in number of
cases erect new ones. 1t will be the
policy of the bureau to continue re-
pairing these buildings but on more
conservative basis so that only the
needed improvements will be made.
On the first of January, 1891, the
bureau had acquired 1887 farms, ag-
gregating 243,778 acres. These figures
are exclusive of the ten farms that
were sold outright by the state.
Sales Carefully Considered.
Most of these lands are located in
the northwestern part of the state
and a large percentage consist OF
farms that are in very good condition
but have been taken over by the state
at a valuation very much in excess