The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-07-10
Bank ReceiuerShip
Held ON Way Out
Sale Of Land Will Write Final
Chapter in States Finan.
CiaI OebaCle
GOVERNMENT GIVING HELP
Land Bank and Home Owners
Loan Corporation Return
ing to Homes

mi 10 00mo8
Editors Note: This is the Sec
ond Of series Of articles on va
rious operations Of the state gov
eminent as they are affected by
the national rehabilitation plan
and as they affect the individual
North Dakota citizen.
As soon as the state receiver of
closed banks can sell some 1900
quarter sections of North Dakota
land which have come into his hands
from insolvent banks. he will be ready
to close up shop and write fins to
his efforts, which will have seen the
liquidation Of 500 insolvent state
banks.
There are other details to be ad-
justed. Of course, but disposition Of
the land Is the biggest remaining
Job, according to Receiver L. r..
Baird, and by the time 1t Is fin
ished the other matters should be
out Of the way.
Meantime, it was revealed, the re-
ceiver is putting back on the land
many farmers who lost their farms
through foreclosure Of mortgages
given to banks In return for loans.
The method used Is the same as that
by which the Bank Of North Dakota
Is taking itself out Of the land Joan
Ing business, transfer Of the obliga-
tions to the federal land bank.
Back into their former homes, also,
have gone many city and village re-
sidents who had lost property by rea-
son Of foreclosure. This has been
done through cooperation with the
Federal Home Owners Loan corpora
ton. which has given splendid CO.
operation In each case. Such deals,
like those with the land bank, have
been profitable for depositors in
closed banks. It has enabled the re-
ceiver to get their money out Of
frozen" assets.
win Pay $l4.ooo.ooo
When it finally locks its doors the
receivers office will have paid out
approximately $l4,000,0 In divi-
dends on bank assets which were
listed at the time of closing at q
total OF $54,l26,556.36, or roughly Is
per cent. The fact that the assets
were not worth the amounts listed,
Of course, is what caused the banks
to close. Had they been worth the
amounts stated the banks could have
liquidated voluntarily or still would
be in business.
At time most banks closed, their
assets were generally of two major
classes, mortgages on farm chattels
and mortgages on farm land. When
the borrowers couldn't pay and de-
positors wanted their money the
banks closed and the receiver was
called in to liquidate its affairs.
The job has been difficult and has
taken too long, according to Baird,
because Of the difficulty OF making
collections, the same difficulty which
every other creditor has been having
in recent years.
Many Of the chattel mortgages
probably would remain to be collect
ed were 1t not for the government
loaning program. Like going banks.
the receiver took advantage OF the
barnyard loans granted late in the
Hoover administration, getting his
money out wherever possible. The
result was greater ease in closing up
the trust affairs Of various banks
than otherwise would have been the
case. Now the land loaning program
~ Ns,nS,iAo q ha1n vIyhnrAvap a fav,sn
er wants to retainer regain-his
land, the receiver Is helping him, for
1t means another account wiped off
the books, more money for distribu-
ton to bank creditors.
Preferred Claims First
In this connection, 1t should be
noted that not all Of the money dis
tributed by Baird has gone to gen.
eral bank depositors. since preferred
claims have had to be paid first and
In many cases these have accounted
for most Of . banks assets. Chief
among these preferred claims have
been those OF the government Or Of
local political Subdivisions, usually
secured by personal bonds or by
bonding companies.
In the former case, such deposits
have been paid from bank assets and
the receiver has recovered from the
sureties when and q he could,
usually bringing suit against them
and obtaining judgments. AZ Z rule
the latter have had little or no value
but, Il recovery comes, they may be
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