The Nonpartisan Leader Newspaper, June 27, 1921, Page 15

. Mention the Leader When Writing Advertisers ~ $3,000,000 STATE OF NORTH DAKOTA 10 to 27 Year 53,9 State Bonds | Exempt from Federal Income Tax, Including »Surtax, (Also exempt from all taxes in North Dakota) Interest Payable Semi-Annually in Gold, January 1 and July 1, each year, at Chicago, New York and Bismarck. Full Credit Obligation of State Special Real. Estate Series Resources of North Dakota " Purpose of Issue Legal Investment for Trust Funds Validity of Issue Maturities: 1931, 1936, 1941, 1946, 1948 Denominations $100, $500, $1,000 - These Bonds have back of them the entire resources of the State, amounting to $3,000,000,- 000, and constitute a full faith and credit obligation of 70,000 square miles of territory, 17,000,- 000 acres of which are under cultivation. I Special provisions have been written into the constitution safeguarding 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, which is the 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. Approximately 30,000,000 acres are occupied by farmers and 17,000,000 acres are under cultivation. The value of the cereal crop in 1920 was $192,248,000, and of its livestock and dairy prod- 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. \ The total bond issues of North Dakota amount to but little more than 10 cents per acre. For each dollar there is property to the value of $500. The total indebtedness 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 credits 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 $100.00 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 towns. The assessed valuation of all taxable property of the State is about $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 matters in connection with these Bonds will be subject to the approval of our counsel, Messrs. Wood & Oakley, Chicago. Price 100, to Yield 5349% 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. Integ‘xm_ certificates bearing 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 containing full description. ' Bond Sales Offices: THE STATE OF NORTH DAKOTA . FISCAL AGENT % ] THE BANK OF NORTH DAKOTA, Bismarck, N. D. i Chicago, 1059 Peoples Gas Bldg. New York, 3061 Equitable Bldg. Phone Harrison 8639 Phone Rector 4425 PAGE SIXTEEN ¢