The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-08-02
q o N T | n i E II
from page one
Collections Drop
And State Faces
Money Stringency

equalization meets this month and i.
is considered certain that levy will
be made at that time to take up at
least a part of the deficit which has
occurred in the state farm loan bust
ness.
! At the same time that interest pay
ments have declined, tax collections
have declined, thus reducing the cash
balance in the states general fund
and causing gradual Shrinkage in
the amounts on deposit with the
Bank of North Dakota by the various
political subdivisions of the state.
With approximately $3,0O0,0oO on de-
post with other banks, there is no
prospect that the Bank of North Da-
kota will have to register it's checks in
the near future as LANCER is said to
have limited in his forecast.
Audit Shows Profit
The audit for the siX-month period
ending last February 90 showed the
bank proper made 23la per cent on
it's capital of 100000 and 81 per
cent after deducting interest on the
bonds issued to obtain that capital.
Of its total assets more than $6,00O,-
600 were in the form of unsola state
real estate bonds and farm loan ad-
vances, however.
It's resources were listed at $23,-
317,692.35 and its assets at $23 $751;
32456, a deficit of 1898, 63221. This
is accounted for by the fact that the
bank charged off $1,700, 497.58 in bad
loans and against this figure was set
up $1.36O.865.37 in operating profits,
The position of the bank has been
steadily improving since 1925, when
the charge off for poor loans was
made.
The farm loan operations, however.
tell a different story as disclosed by
the February report. During the pre-
ceding six months 1,19l loans were
completed, borrowers receiving ST.
821 800 on 234,410 acres of land
pledged as security. During the Pc
Rod the departments expenses eX-
ceeded income by $25,993.88, the fig
ure including the interest on bank
loans to the department at per cent.
After deducting all bond interest
coupons due to January /, 1882, inter-
est fund cash expenditures exceeded
interest fund cash earnings by ST.
144,92S.36 on February 20 and this
deficit has mounted during the last
six months. The net deficit after set
ting up accrued accounts receivable
and other items was placed last Feb
ruary at $636,261.26.
Expense Exceeds Income
The income and expense Statement:
shows cash income of $l1.126, 0l.46
since the business was started. OF
which $9,846.623.26 was from interes.
and penalties on loans. The cash
expenditures were $13,271 .527.82 in
Guiding s12.739 ,5C498 in interest paid
on outstanding bonds.
The Bank of North Dakota has adj
vanced $7O0,448C9 to the real estate
fund. of which $567 ,O94.83 was used ia
pay the taxes on foreclosed land be-
fore sheriffs deed could be obtained
Against this figure is ar item o!
S125, 420.e6 in undistributed rents and
sales collections.
Total liabilities of the department
are $41,071, 4s3.44 and resources ara
$40 .435 .22218, the deficit of $685. ,261.-
26 being listed to make the two sums
balance.
Outstanding bonds total $50 BAT TOO
against which there are open loans
totaling $3l .338,311.s7 and sheriff's
deeds valued at $500, 734.82, a total
of $34,999 ,O4679 In addition. the
bond sinking fund contains $3O1l,.-
00332.
The position of the state govern
ment with regard to money for oper-
ating expenses is indicated by the
amount in the general fund. Into
this fund goes all money received BY
the state, with the exception of In
lstitutional collections. Money from
Income. inheritance, cigarette anc
other special taxes go into It as doe