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Nonpartisan League

100 Years: The Bank Of North Dakota (Part II)

While the Bank of North Dakota attempted to establish itself on a firm and responsible foundation, difficulties arose from three fronts: First, the League-owned Scandinavian American Bank of Fargo went into receivership in February 1921, after audits revealed a number of marginal and worthless loans, and inept management. Many people around the United States wrongly assumed that the bank in question was the experimental Bank of North Dakota (BND). Even among those who made the distinction, BND suffered by association. The Scandinavian American Bank had been having significant troubles all the way back to 1919, two years after the NPL purchased it.

100 Years: The Bank Of North Dakota Story (Part I)

The credit system of the United States and the northern plains was not structured to meet the needs of North Dakota farmers in 1915. National banks could not lend money on farm mortgages. State banks could make farm loans, but they were under-capitalized, often dependent on money from out of state. Farmers were heavily dependent on store credit—buy food and hardware on credit now, pay for it after harvest—and insurance companies. Farmers needed money to purchase equipment, buy seed and livestock, and pay for such necessities of life as they could not produce for themselves on their farms.
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