The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-10-17
r. o N T l N u E Id
from page one
Governor Calls on
Voters to Defeat
Moratorium Issue

renewals and extensions of such loans
must be made to enable the debtors
tC carry on.
The president has directed the
United States department of agricul-
ture to accept Is per cent of the 1892
crop production loans and to renew
the balance for term of years under
such conditions as congress shall pre-.
scribe. Undoubtedly, congress will, as
in the past. require crop security as a
condition to such renewals and ex-
tensions.
IF our farmers can not give crop
security for such renewals on account
of the anti-crop mortgage law, the
renewal privileges will be denied to
them and the government will be
compelled to enforce the collection OF
the entire amount of the loans due
this fall
Moratorium Is Threat
OF the moratorium measure the
governor said that "the mere threat
and agitation for this bill has already
practically suspended our public
credit. both within and without the
state"
Those who can pay taxes and other
debts, the governor stated, should re-
main under legal duty to do so III
the interest of maintaining the solv-
ency of both public and private insti-
tutions."
Serious damage, the governor said
has been done to the state by agita-
ton for the moratorium.
During 1881, the Bank Of North
Dakota had no difficulty in selling
state bonds for farm loan purposes"
he stated.
1T sold over 100000 OF such
bonds at rates ranging from Az per
cent down to per cent. 1t was able
to. and did, make farm loans to North
Dakota farmers in the amount of 81
074.300 in 1881. During 1892, up 70
July /, it made $l.070.300 in farm
loans. In June. this year, however.
when it was learned five-year NOR
atorium measure was pending, the
bond market was entirely closed to
North Dakota bonds. Since the re-
initiation of the present measure IN
August, it has not been possible to sell.
any new North Dakota farm loan
bonds in any market at any price.
Minnesota. on the other hand, has
recently sold rural credit bonds and
highway bonds at rates as low 800
per cent. The result is that the
Bank of North Dakota was compelled
to suspend the making of all farm
loans on July /, and no further loans
can be made until this moratorium
threat is entirely eliminated"
r. F. C. Action Withheld
Action on an application to the Re.
construction Finance Corporation by
the Bank of North Dakota for funds
is being withheld, the governor said.
on account of the moratorium meas
ure. while the regional agricultural
credit corporation set up at Minne-
apolis to furnish emergency livestock
loans to farmers Of the northwest Is
limiting loans to persons Of proven.
financial responsibility.
The governor called attention to the
fact that, due to the drought, the
Bank of North Dakota loaned nearly
$2,500,000 on certificates Of indebted
ness and warrants to counties. cities
and school districts in the northwest
ern part OF the state.
Since July 1, this year." he added
mo further loans have been made by
the Bank of North Dakota to any po-
litical subdivisions for any purpose"
because the value of these certifi-
Gates. bonds, or warrants, as security.
would be entirely destroyed for three
years, should the proposed morator-
ium measure be adopted"
The governor said adoption of the
moratorium measure would result IT,
such drastic drop in the collections
as to make the conduct Of both local
and state governments impossible
without heavy borrowing" and would
make borrowing impossible because
it will destroy the foundation of pub
lie, credit which rests upon both the
ability and legal duty Of the citizens
to pay substantial part Of their
taxes each year."
Hundreds Of rural and town schools
will be obliged to close, he declared
unless the teachers are able to serve
out their terms without compensation