The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1935-02-01
The Changing Situation

The Changing Situation
Figures recently compiled by fed
eral finance agencies, showing their
activities In North Dakota during
1894, will cause the thoughtful citi-
zen Of this state to wonder II we have
not reached a stage at which it would
be wise to change our approach to
the entire problem Of depression.
Statistics show that the federal
land bank, the federal loan commits
sioner, the bank for cooperatives, the
intermediate credit bank and the pro-
duction credit associations have,
among them, poured $87,l3o,75l into
North Dakota during the last calen-
dar year.
OF this total $37,3l3,6oo was in land
bank loans: $29, 7S8,0O in commits
sioners' loans; $379,050 in loans from
the bank for cooperatives: sl8,782, l39
In discounts with the intermediate
credit bank and $780,, 1862 In loans by
production credit associations.
Figures showing the number Of
loans, where these are available, also
are interesting. They disclose that
l1,7SS loans were made directly by
the land bank, l6,l5l by the commits
sioner and IS by the bank for CO.
operatives. The number Of customers
affected was not listed by the other
agencies.
Careful consideration OF these facts
indicates that our major problem is
not 50 much how to still further re-
6uce the debt burden but how to in
crease our earning capacity.
It Is true that many farmers still
need refinanc!ng. For one reason or
another they have been unable to
strike compromises with their credi-
tors and the effort to rehabilitate
them must go on. But at least 1l,788
have had their difficulties adjusted
upon a bearable basis through the
land bank refinancing. It would
seem that we are well on the way
to complete adjustment Of the debt
situation. for this Is q substantial
fraction Of farm owners.
It is impossible to tell from avail
able records how many Of the ll,7s8
who received land bank loans also
received commissioners loans, but
based on the experience Of the Bank
OF North Dakota, which has redis-
counted many Of its land loans, it
would seem to be q considerable num-
Der.
Since all Of these loans were for
the purpose Of refinancing the farm
er and none Of them was made With
out compromising his entire debt
situation, 1t would appear that the
number actually benefited is repre-
sented by the larger Of the two fig
ures, hence 1t Is . still larger fraction
Of our farm population.
All Of these people, presumably. are
in shape where they reasonably can
expect to meet their obligations.
granted fair average conditions. Az
soon as other farmers complete their
adjustments, our major struggle with
the farm debt situation will Be over
and we shall be able to turn our at
tention to the subject Of how to i'm
prove and increase our agricultural
production as well q to methods Of
maintaining prices.
This, judging by the data obtained
in the various control plans. Is more
OF an issue than most Of them have
realized. Wheat figures. for example,
show that We would have had no real
prosperity during the last five years
regardless Of the price situation. In
Burleigh county We would not have
had good times during that period
had wheat been held continuously at
- . bustael. simply because We did
not produce enough and too much OF
the farmers income was eaten UP
by interest charges.
As . result Of our new situation, the
demand for imitation should be ma
terially lessened. The reason 1t was
popular IN this state was the over.
whelming debt burden which now Is
being relieved. Farmers sought t.
pay With cheaper dollar but have
achieved the same result by q reduce
ton In the amount to be paid at the
present unit Of value.
What we need now = . realization
that We are approaching . period Of
normally, granted fair crops and Z
continuance Of the present price
trend. We should adjust our think
ing for the long pun ahead, BE- pre-
pared to change our operations as