Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1932-04-28

lHE OlAlE NUNAL
CREDITS BUREAU
This is a radio address given
recently over WCCO by Thomas
Frankson, secretary of the Mimi
esota Rural Credits Bureau. in
which he takes up little of the
history connected with the bu-
reau, its establishment, purpose.
and how it is conducted.
BY THOMAS FRANKSON
As secretary and board member OF
the Rural Credit Bureau, l will brief
" discuss and touch upon the activ-
tiles of this department of our state
government. The Rural Credit Blu
reau was created by legislative en-
actment in the year 1923 for the pur-
pose of loaning funds to farmers at
a low rate of interest, thus promot-
ing and encouraging agriculture.
dairying and livestock raising in the
state of Minnesota. The law specifi-
issuance and sale of rural credit
bonds up to $70,000,O00. OF this
amount, there has been sold $60,000,-
900, leaving a balance of $1O,OO0.OOO
that may be sold as the board may
determine.
In the past, the bureau has been used
as a political football and severely
60 70
function. Much of this criticism
was justified, but these conditions
have been remedied. The taxpayers
of the state should not forget that
the bureau is corporation having
an authorized capitalization of $70,-
100000 with S6O,000,0O0 invested cap
ital which is represented by first
mortgage loans on improved farms of
approximately S45,000,0OO, and 224O
state owned farms representing an in
vestment of S14,500,000. A great num-
Der of these farms can be sold above
the state investment, some for the
amount of the original loan, and a
greater proportion must be sold be-
low the states investment. l feel
statement that in the event we Of
fered all our state owned farms for
sale at the best price obtainable
today, the state would not lose to
exceed go of its total capitalization.
No Political Debt Loans Now.
This record is not so bad when you
stop to consider that the bureau
started in business in the year 1928,
just at the time initiation had reached
is momentum Have other lOaning
companies or private investors
emerged from this disastrous depres-
sion with smaller losses? True, the
board has made mistakes in the past,
but since the year 1923, what insur-
ance company, broker or investment
company did not make mistakes en-
failing heavy financial losses during
this period of depression. The bu-
reau is sound and solvent. All loans
now granted by the present board are
safe and conservative. No loans are
granted today to pay political debts
but strictly up to the amount the Sc
curity offered will warrant.
The chairman of our board, Mr..
GaarenstrOOm, is entitled to much
credit for the splendid services he
has rendered the bureau Since his
appointment by Governor Floyd B.
Olson, in February, 1881, many of the
departments have been reorganized,
which has eliminated duplication and
needless expense and increased the
efficiency of the bureau very mater
and expense of the bureau today is
the farm management-carin for,
supervising and managing the 2240
state owned farms Upon checking
the total cost for new buildings and
requisition work on farms for the
year 1880, the books showed an ex-
penditure of 1896, 227.00. Mr.. Gaaren-
stroom said this unwarranted expen-
diture must stop, so he re-organiZed
the entire state into 16 field districts
and put in a field manager for each
respective district This enabled
them to give careful supervision over
all the farms, employees, carpenters
and contractors. As a result of this
change, the total cost of building and
requisition work for the year 1881
was S142, 279.00-a saving over and
above the previous year of $3.50, 948. co.
Savings ON Insurance.
Another saving by the Board was
accomplished in 1881. 1t was found
on checking I'D the insurance records