The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-07-21

loans through either the federal land
bank or some other source. The 81.
preme court, by q vote Of two to three,
. few weeks ago, held that the board
could not legally DO this. Consequent
", In my Judgment It IL imperative
that q resolution providing for . con.
stitutional amendment to be voted
upon In November, be adopted at
once, authorizing the scaling down of
these debts and the refinaucing Of
these loans.
Bank Should n Agent
Likewise, believe that the Bank
OF North Dakota should be made the
fiscal agent Of the board Of univer-
sity and school lands and that the
field agents Of the Bank Of North
Dakota should do this work through
. consolidation Of the farm loan de-
partment Of the Bank Of North Da-
kota and the land department Of the
state Of North Dakota, the manag-
ing control being under the board Of
university and school lands.
ALSO, I desire to bring to your at
tention the fact that there have been
losses by the board in the purchasing
OF bonds, one loss amounting to
nearly 100000 in the purchasing OF
drainage bonds in Sargent county.
This department should be investi-
gated from top to bottom In the be-
lief that its business methods should
be changed entirely. particularly the
system Of appraisement Of lands TO
be sold. I am satisfied that millions
Of dollars will ultimately be saved
to the schools Of this state, II appro.
pirate action 10 now taken. Some
months ago, finding that the loans
which could be made to the farmers
Of this state were too small In
amount, being limited to the sum Of
$4,000, I wrote to the president ask
ing that the United States govern
ment certify the state Of North Da-
kota as being In q distressed emer-
gency area within the meaning Of |
that phrase as used In Paragraph (B)
OF Section 2 Of the act Of congress ap-
proved Feb. q, 1894 public Docu-
ment No. 97-7Srd congress) in order |
that loans might be made hereunder
without regard to the restrictions
provided In that paragraph as to the
maximum amount which can be
loaned to any one borrower. 10 this
request the president, In q letter
which reached me the latter part OF
April. replied, saying among other
things the following:
UNFORTUNATELY, however, under the
present laws Of North Dakota extern
sive operations by these associations
are impossible due to the fact that
they are not exempted from the sta
tutory prohibition against the taking
OF crop liens "a type Of security nec-
essary in production financing), and
from the existing moratorium under
which the foreclosure Of certain mort
cages Is forbidden for an indefinite
period.
AT the time the farm credit act Of
1888 was enacted. legislation in sew
eral other states concerning such
matters as the acquisition Of liens on
crops was not well adopted to the e.
fecttve operation OF product credit as
sociations. However, with q view to
making the credit facilities Of produc-
ton credit associations widely avail
able, most Of the states proceeded
promptly to modify such legislation.
Amendatory measures Of that char.
acter have been recently enacted In
the states Of Delaware, New Jersey,
Pennsylvania, Michigan, West Vir-
ginia, Virginia and New York and are
now being considered by the legisla-
tive bodies Of Rhode Island, Mas
sachusetts. Kentucky, Ohio, Illinois
and Louisiana.
Law Repeal Necessary
From this you will note that be-
fore the state Of North Dakota can
take advantage Of farm credit act Of
1888, providing for . permanent sys-
TEN Of production credit. it is nee
essary u) to repeal the law passed
by the people Is an initiated meas
ure, providing that there shall be no
crop mortgages given in the state Of
North Dakota: and ca that the exist
ing moratorium under which foreclos-
ures on certain mortgages are forbid
den for an indefinite period be either
lifted or modified.
Feeling that, In view Of the fact
that the people of North Dakota had
twice voted against the validity Of
crop mortgages In North Dakota, and
further believing that the moratorium
which I declared Is governor Of this
state, was and Is absolutely essential
to the well-being OF the rank and file
Of the citizens Of North Dakota, I
have refused to lift the moratorium,
as requested by the president, and !
desired to pass the matter on to the
consideration and action Of the lekts-
lature.
Wanted Funds for CCC Work
"Also I desire to bring to the atten-
ton Of that body one Of the pro-
posed measures Of relief In North
Dakota. The federal government Is
establishing Coo camps and although
I asked that thirty-eight such camps
be allocated for North Dakota. only
eight have been allowed and ap-
proved.
"Since the last session Of the legis-
lature, the people have initiated and
passed q bill providing for beer de-
partment. I desired to recommend
the passage Of legislation which will
consolidate the regulatory Depart
ment and the beer department, and
the elimination Of . good many In
spectors just as soon as all the places
selling beer had been licensed. There
were 2,350 unlicensed places when the
law went into effect on October 22nd.
AL Of these have been licensed with
the exception Of about 900. AZ soon
as all Of tie 800 are licensed. I be-
lieve that 80 per cent Of the beer In
spectors could be dispensed with.
1.-THE bill which was passed ct the
last session Of the legislature provid-
Ing for . gross tax On the earnings
Of utilities u under attack in the
I.on,r$a Nn& = Aa1lay, ~ f1HA n90n mn