The Nonpartisan Leader Newspaper, June 13, 1921, Page 7

$3,000,000 10 to 27 Year 53,9, State Bonds Exempt from Federal Income Tax, Including Surtax (Also exempt from. all taxes in North Dakota) Intereqt Payable Semi- Annua]ly in Gold, January 1 and July 1, each year, at Chlcago, New York and Blsmalck Full Credit Obligation of State Special Real Estate Series Resources of North Dakota Purpose of Issue Legal Investment for Trust Funds Validity of Issue A . Maturities: 1931, 1936, 1941, 1946, 1948 Denommatlons $100 $500 $1, 000 3 These "Bonds have back of them the entire resources of the. State, amountlng to $3, 000 000,- 000, and constitute a full faith and credit obhgatlon of 70,000 square miles of ter11t01 y, 17,000,- 000 acres of which are under cultivation. ~ STATE OF NORTH DAKOTA Special provisions have been written mto the constltutlon safeguaxdmg the payment of both principal and interest, which cannot be changed or replaced until both have been paid. In addition to placing behind the Bonds the credit of the entire State, its full taxing power and its total resources, first mortgages on improved North Dakota farm lands have been filed with the State Treasurer as a direct security. They represent approximately 40 per cent of the valuation of the land, and in no case can the valuation be more than 50 per cent, whlch is the : i ratio by statute. These mortgages are on farms under cultivation and the interest is now being paid. As a consequence, an interest fund has already been created. The interest and amortiza- tion payments on the mortgages are sufficient to meet the interest payments on the Bonds and retire them at maturity. A further guarantee of sinking fund is assured by direct tax on real estate and personal property. Its population, according to the last census, is 645 730. Approx1mately 30 ,000,000 - -acres are occupled by farmers and 17,000, 000 acres are under cultxvatlon The value of the cereal crop in 1920 was $192,248,000, and of its llvestock and dairy plOd-" ucts $56,000,000, a total of nearly a quarter of a billion. " Its bonded indebtedness, including this issue, is less than one-half of 1 per cent of the State's 'assessed valuation. T n The total bond issues of North Dakota amount to but httle more than 10 cents per acre. For each dollar there is property to the value of $500. The total mdebtedness of the State, after the present, issues are sold, will be about one-fortieth of one year’s production. The purpose of the issue is to stimulate agriculture by advancing to farmers additional capi- tal secured by first mortgages on their improved farms. This plan of rural credlts is followed by other States and is on lines similar to the Federal Farm Loan Act. The Bonds offer a legal investment for trust funds and Savings Banks in New York and most other States The present State debt outside of this issue is less than $250,000.00; or less than two cents on each $100 '1(‘)}(3 of the assessed valuation of the taxable property of the State. is bond issue has back of it the entire resources of a great State—a State with forty-five millions of acres of fertile farm land with hundreds of thriving cities and to he assessed valuation of all taxable property of the State is :l?out $1, 500 000,000.00. This bond issue of $3,000,000.00 amounts to but twenty cents to each $100. 00 of valuation. The constitutionality and validity of the law authorizing the Bonds has been passed upon and approved by the District’ Court, by the Supreme Court of North Dakota, by the United States Federal District Court and by the Supreme Court of the United States in an unanimous decision., Copies of this decision will be furnished by the undersigned. All legal matiers in connectlon with these Bonds will be sub)ect to the approval of our counsel Messrs. Wood & Oakley, Chicago. " Price 100, to Yield 534% All checks must be made payable to:—The Bank of North Dakota. . ’ The right is reserved to.reject any.and all applications and to award a smaller amount than applied for. Interim certificates bearmg the same interest will be issued until the Bonds, dated July 1, 1921, are delivered. We invite the closest investigation of ‘this issue by the most conservative bond buyers. Write or telephone for booklet contammg‘ full description. THE STATE OF NORTH DAKOTA FISCAL AGENT THE BANK OF NORTH, DAKOTA, Blsmarck, N. D. Bond Sales Offices: Chicago, 1059 Peoples Gas Bldg. New York, 3061 Equitable Bldg. Phone Harrison 8639 Phone Rector 4425 Mention the Leader When Writing Advertisers PAGE SEVEN