The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-09-10
CANCEL 100000
REALESTATEb0NDS
IS DALE'S ADVICE
Recommends Move to Cut Down
Interest Payments, Would
Use Sinking Funds

Cancellation Of 100000 in state
real estate bonds, 10 effect an estt.
mated saving Of $250, 900 per year, was
recommended to the state industrial
board Monday,by State Treasurer Al
fred 8. Dale.
Dale also recommended that no tax
1evies be made this year for either the
real estate bond interest fund or real
estate bond principal fund.
He based his recommendations on
the favorable condition Of the inter-
est fund.
ITO cut down the amount required
for interest payments, recommend
to the industrial commission that they
approve the purchase and cancella.
ton Of 5000, 900 worth Of North Da-
kota real estate bonds.
IT bonds are cancelled whose aver
age interest rate Is five per cent, this
will mean that less money viii be
needed for interest In the amount Of
$4,000 q year. Il the bond maturity
averages 10 years, then the saving In
interest requirements will amount to
32,500. 600"
39,0o0.000 In Sinking Fund
Dale said he was strongly recon-
nending" the cancellation for the
additional reason that total Of ~
100000 has already been accumulated
In the sinking fund by virtue Of the
federal re-financing policy. In my
opinion this huge sum should not be
continued. This money should be
used Immediately to buy and cancel
outstanding bonds, for which 1t IS In
tended. Retire the bonds; protect the
fund, and reduce the interest require
ments: We thereby most effectively
aid the taxpayer who must otherwise
Be called upon to foot the higher In
terest BILL
While r. M. stangler, manager Of
the Bank Of North Dakota, In his re-
port to the industrial board asking
for . levy for the bond interest fund,
estimated . deficit Of more than $780,
600 In the fund, Dale In his report
claims . surplus Of sos ,5S4.30 will
exist.
Dale explained the difference in the
expected balances in the interest fund
rs Of July !, 1885, saying he estimated
q 200, 900 transfers Of monies from the
motor vehicle fund, whereas Stangler
estimated 81 900 900 income from that
income; Dale estimates . $o00,0 900 in
come from interest collections: Stang
Ter . $4,000 income; from tax col
lections, Dale estimates receipts Of
$500, 900, while stangler estimated the
income ct $2sl .osl.33.
Estimates Total Collections
Dale estimated collections into the
fund from farm loan payments, past
due tax collections. motor vehicle
transfers and miscellaneous collections
would total @2,7500 900, with an exist
ing cash balance June 80. 1894, would
give the fund . total Of $3.50. 63S 80,
he said.
He estimated expenditures to be -
O6l ,05l 20, for coupons due Is Of July
/, 1883, and other coupons coming due
In January and July Of next year, to-
gether with certificates Of indebted
ness.
while It Is evident that the real
estate principal fund viii eventually
suffer q loss" Dale said. "lnasmuch
as there Is now Z balance Of 100000
in that fund. and only 100000 is re-
quired to retire the bonds coming due
in the next four years, therefore
recommend that purchase and cancel
lation Of 100000 Of North Dakota
real estate bonds. And ] further
recommend that during this emer-
gency, when lower taxes are 50 highly
desirable. that no levy be made for the
real Estate principal fund"