The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-09-07
100000 DEFICIT
IN BOND INTEREST
seen BY STANCLER
Manager Of Bank Of North Da.
kota Recommends Special
Levy to Cover Need

the real estate bond interest payment
fund was forseen Friday by r. M.
Stangler, manager Of the Bank Of
North Dakota, in his recommendations
for levy purposes to the state board
Of equalization.
stangler, in a report to the state
industrial commission, outlined the
expected deficit, recommended q levy
to cover it, totaling $559, 510.98, and
suggested an additional levy in anti
cipation Of the possibility Of the state
legislature not extending the state law
providing for transfers Of money from
the motor vehicle fees to the bond
interest payment fund. The law pro-
vided for such payments only until
July l, 1885.
In his report to the commission,
Stangler pointed out. II believe the
state board Of equalization in making
q tax levy for this fund should care
fully consider the possibility that this
law may. not be extended or renewed
as these funds are badly needed for
road purposes. as originally intend
ed.
Suggests Levy Each Year
"A small levy should be made each
year, SO that II North Dakota has
crop failures in the future as it has
had In the past, it. will not be neces-
Sary for the legislature or the board OF
equalization to make excessive pro-
visions in any one year to meet emer-
gencies, such as was experienced in
1888, when the fund was completely
exhausted and overdrawn and in adj
dition to that the state treasurer had
borrowed $2,255,000 on certificates Of
indebtedness to meet the interest on
outstanding North Dakota state
bonds"
stangler's statement Of the fund
showed:
State treasurer's certificates OF in
debtedness issued in 1894 for the real
estate interest fund to the state hail
department in anticipation of taxes
to be levied thereafter, $500, 600; ac-
crued interest on certificates for one
year to April 2, 1885, $3.50; real es-
tate bond interest payable July !,
1894, $962, 52284; real estate bond in
terest payable January l, 1885, $685.
522.84: real estate bond interest: pay
able July l, 1885, $905. 1924: balance
in real estate bond interest payment
fund, after deducting all interest cou-
pons due up to july l, 1888, $500, 900.
Stangler estimated decrease in re-
ceiptS from motor vehicle registra-
ton Of 100000, to bring total in
come from this source Of $1,000, 900.
He estimated collections and interest
at $4,000, with the total on hand at
July /, 1885. of $780,, 007.54.
Mortgage Interest Collected
6tangler explained that from Janu.
ary ! to July l. 1888, total Of $780,
1898 interest on farm mortgages
was collected through actual collec-
tions and refinancing Of mortgages
which was on normal basis"
From July l, 1888. to July I, 1894,
total Of $1,033, 506.24 was collected
in interest on farm mortgages through
actual collections and refinancing Of
mortgages with federal land bank and
commissioners loans.
Since July l, 1894, interest received
on farm mortgages has been greatly
reduced and 1t appears that from now
on, the interest collections will be
again practically on a normal basis, :"
Stangler said. "as during the first
six months of 1888. The commitments
received are somewhat smaller and
on most Of the mortgages that we are
now working on, we find that before
they can be closed in many cases all
Of the interest and even part Of the
principal will have to be discounted
II loans are to go through.
Loans that have been refinanced
were In q somewhat better standing
than the pending loans to be refinanc-
ed, where am sure tn many cases,
even part Of the principal will have
to be discounted II the loans are to
be closed.
II might call attention to the fact
that up to now there is q principal
loss Of $l87,sl5.73 which was sustained
through the sale Of real estate for
less than the principal amount In
vested and through discounting Of
mortgages being refinanced with fed
eral land bank and commissioners
loans. This principal loss will increase
during the next year as we have quite
a few land deals in the process Of
being refinanced and I know the loss
in some cases will be terrific"