The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-01-04
FARM LOAN DEPARTMENT

snt agent the state The procedure for the bank
advance its funds to the borrowers first mortgages
such mortgages to the state treasurer who holds them
bond for 1 and e @ M and sell its
security to the bonds As rule the bank buys the bonds
such bonds to private investors as require
Following this plan the bank has made total of
the department Of such farm loans were made
during my administration.
For several the bond market for North Dakota
estate bonds had continued and in the early
of 1881 the Industrial Commission sold real bonds
bearing interest as low as per cent at Later 1881
mcn declined in value In 1892 two which
as the s issue Of
bonds by the State of South Dakota high as 6
to the Of Of two sne
porting to declare moratorium contract debts and
people at the June Primaries The public knowledge Of this
action which advertised throughout the country resulted
law law that bonds may no be- so S
the at Il. real
dustal Commission suspended all farm loan operations on
the Of the Bank to make sS
an application to the Finance Corporation for
loan of and to pledge real estate bonds as
security therefor for the enabling farm loan
to continue farm loan operations during this
moratorium measure the Finance Corporation
o Of ss s P s Si,
Of this measure officers the Reconstruction Fnance
Corporation indicated their willingness proceed with the
application but in Of the forthcoming change in the ADJ
minraon of the Bank Of North Dakota to take place
the Industrial Commission concluded that would be nm
wise to commit the future Of Bank to the
obligation Of such undertaking. and accordingly the an
plication withdrawn
The theory Of the farm loan policy Of the state under
which the state has been operating 1919 that while
the credit of the state is directly pledged by the issuance
Of real estate bonds the income from interest and prncina
payments the mortgages taken, will pay the interest and
principal Of the bonds issued therefor thus avoid anv
burden the taxpayers Unfortunately this theory has not
mortgage nstament payments began Immediately IN 1919
and continued each year thereafter that between 1921 and
1924 inclusive the state obliged to- and did make proper
ty levies amounting to order to obtain the
funds the interest on the real e.
tate bonds Between 1924 and $780, this department. With
the aid OF the tax evies referred to- Chat
the mortgage interest payments received were suf
cient discharge the full amount of the bond ntarest fan
ing due each In $780, there deficit ia Era inera
collections and the state treasurer borrowed from
Bank OF North Dakota to make bond interest and
thereafter in 1884, the deficit having been overcome n
the meantime the Board Of Equalization made ~ lew
OF in accordance with the provisions Of the law
such cases. In the period between July l. 1881 and juv
1882 the shortage in the mortgage interest collection be-
came 80 large that the state treasurer compelled "a in
her for bond interest to
This condition obliged the Board Of Eoualizs
ton to include in its 1882 levy further sum of II
for the real estate bond interest fund This brings
the total OF tax evies made to date for estate bond in
terest to 1851 60 During 1881 and 1882 dernuen