The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-09-19
r. o N T l n u E ID
~ from page one
Farmers Troubled
By High Taxes and
Depressed Prices

ing is not far distant and when the
taxpayers of the state read the results
in their tax bills there will have to be
some tall explaining.
Members of the legislature soon to
convene in North Dakota should take
a few pages from South Dakota's
plight and bend every effort to clean
up the financial mess which several
programs have caused.
But to return to the South Dakota
situation. Total assets of the South
Dakota rural credits board in round
figures are $38O00,00O. Half Of this
amount consists of book value on
land owned by the department. These
acres are off the tax lists and in most
instances unproductive, situation
adding appreciably to the tax load of
the people.
Already the state has supplied to
this department from tax levies and
legislative appropriations $4,486 $685.
SO. This has been charged to operat-
ing expense.
Against the assets mentioned. the
rural credits board has liabilities of
some $42, 100000. These are mainly
bonds due or past due. On Sept. 13
the state board of finance was forced
to authorize q loan Of $4,000 to pre-
vent default Of bond interest.
The rural credits department ha.
called for bids to be opened Sept. q
for $1,5o0,00o proposed bonds. the
proceeds of which Is to be used tc
pay maturing bonds and interest due
between Oct. IS and Jan. /, 1888
These two incidents reflect some OF
the extremities to which the rural
credits system Of the state must re-
sort.
Need Close Attention
Whoever Is elected governor in
North Dakota must focus attention
and publicity upon our own farm
loan operations, both as conducted
by the Bank of North Dakota and
also by the board of university and
school lands. This situation has been
allowed to drift in our state. South
Dakota is facing the music now and
finds the situation trying, to say the
least.
Last March South Dakota was
forced to pay 6la per cent interest
on a 100000 bond issue sold to
save the rural credits department
from chaos. To save paying such
excessive interest rates, the depart
ment is asking the state to loan the
rural credit department out of its
surplus in other funds at per cent
the rate paid to the state by the
banks. State officials are moving
slowly along this line as they must
protect the operating funds so that
the state has sufficient money tt
meet current obligations.
The state board of equalization Of
South Dakota has lodged making a
sufficient levy to hold up the rura
credits department. The director
asked for levy of 100000. Gov.
ernor Green objected, saying this
levy would counterfeit most Of the
budget reductions made by the vari-
Gus counties. He favors passing the
buck" to the next legislature. Gov
Green says the taxpayers cannot
stand the pressure now. Various
North Dakota boards Of equalization
have lodged the responsibility ir
part covering the same kind of 6
situation involving payment of the
piper for the so-called state indus.
trial program. But pay day is in.
evitable and the taxpayers will hav.
to be given the whole picture IL
North Dakota, as is being done fear.
lessly In this state. Interest is a re.
lentless boss. Politicians In thi!
state have been able to juggle tn,
finances to postpone the grief, bu
now, in the pinch Of economic condi
lions, t'-cre Is no place to go ant
the situation has to be faced square
ly.
Are State Liability
Taxpayers must remember, too
that the rural credit bonds in Soutl
Dakota as well as North Dakota ar
In no way dependent upon the sol
vency Of the rural credits business
They are . liability on the Who'll,
income Of the state. an obligation
resting upon all the citizens of tn,
state. This situation, when It sink
In, should arouse more people in on
state to the immediate necessity o
. non-political audit Of all state
owned ventures especially settin,
forth what are the obligations grad
ually being placed upon the backs O
North Dakota property owners soutl
Dakota u telling her people tn
NAKED truth. Whoever Il elected II
November owes the same to the peo
pie Of our state.
I have not before me the volum
Of business done by the South Da
kote rural credits board. Outstand
Ing bonds Of some $4,000 900 reflect
: considerable proportion of tina
volume. Since 1925, the rural credit
department has been In process o
iiquidatiop. There have been TIN
usual heavy defaults In loans neces
stating foreclosures such as has beef