Bank of North Dakota

(woman) THEY REALLY HAD TO FIGHT.
NOT ONLY DID THEY HAVE TO FIGHT THE EVIL EMPIRE,
BUT THEY HAD TO FIGHT BEING BRANDED AS BOLSHEVIKS,
AS REVOLUTIONARIES, AS SOCIALISTS, AS COMMUNISTS,
AND REALLY THEY'RE JUST SIMPLY FARMERS WHO WANTED A FAIR SHAKE.
[piano plays in bright rhythm & tone]


(woman) PRODUCTION FUNDING IS PROVIDED BY A GRANT
FROM USDA RURAL DEVELOPMENT
AND BY THE MEMBERS OF PRAIRIE PUBLIC.
[phone rings]
GOOD MORNING, BANK OF NORTH DAKOTA!
(Wayne Stenehjem) THE STATE OF NORTH DAKOTA IS IN THE BANKING BUSINESS.
THAT'S WHAT THE BANK OF NORTH DAKOTA DOES,
AND IT'S ONE OF THE
BIGGEST BANKS IN THE COUNTRY,
ASSETS OF $2 BILLION,
AND SOME SAY THE BIGGEST BANK
BETWEEN MINNEAPOLIS AND SEATTLE.
AND IT'S SOMETHING THAT HAS
SERVED THE NEEDS OF NORTH DAKOTA QUITE WELL,
AND ACTUALLY MOST NORTH DAKOTANS ARE VERY, VERY PROUD OF IT.
(Gov. John Hoeven) OUR STATE IS GROWING.
WE'RE GETTING, I THINK,
EXCITING NEW BUSINESSES
AND NEW BUSINESS OPPORTUNITIES.
WE WANT TO GROW
OUR STATE'S ECONOMY, WE WANT TO
DIVERSIFY OUR STATE'S ECONOMY,
AND THE BANK'S PART OF THAT AND GROWS WITH IT.
THERE YOU ARE.
THANK YOU VERY MU. THANK YOU.
I THINK THAT DESIRE ON THE PART
OF NORTH DAKOTANS TO WANT TO BE
A PART OF THEIR OWN DESTINY
IS REALLY THE REASON
THAT THE BANK EXISTS.
(male narrator) THE BANK OF NORTH DAKOTA'S ROOTS ARE PLANTED
IN THE EARLY YEARS OF SETTLEMENT
AND THE OUT-OF-STATE BIG BUSINESSES
THAT MANIPULATED THE LOCAL ECONOMY.
THE THING WE KNOW ABOUT FARMING,
IT'S AN INDUSTRY WHERE
YOU HAVE VERY LITTLE CONTROL.
YOU HAVE THE WEATHER WHICH YOU'VE GOT NO CONTROL OVER.
YOU HAVE THE BANKING INTERESTS AND COSTS OF INTEREST ITSELF
WHICH YOU'VE GOT NO CONTROL OVER.
YOU'VE GOT THE GRAIN ELEVATORS AND THE RAILROADS
WHICH YOU'VE GOT NO CONTROL OVER.
THEY WERE STILL COMPETING ON AN INTERNATIONAL MARKET EVEN THEN,
WHICH THEY HAD NO CONTROL OVER.
THE PRICES THAT THEY GOT FOR THE GRAIN
AND THE COST OF THEIR SEED, THEY HAD NO CONTROL OVER.
AND SO THE IDEA THAT THEY COULD TAKE CONTROL OVER
SOME OF THESE QUESTIONS THAT AFFECTED THEIR LIVELIHOOD WAS,
I MEAN, IT WAS A FABULOUS IDEA
AS FAR AS THOSE FARMERS WERE CONCERNED.
(narrator) AFTER ACHIEVING STATEHOOD,
NORTH DAKOTA TRIED UNSUCCESSFULLY
TO CREATE ECONOMIC INDEPENDENCE.
BUT YEAR AFTER YEAR,
EFFORTS TO ORGANIZE FARMER CO-OPS WERE STYMIED BY THE
TWIN CITIES-CONTROLLED POLITICAL MACHINE IN NORTH DAKOTA.
THE CO-OP MOVEMENT WAS
THE FIRST EFFORT TO TRY TO DEAL
WITH THIS CORPORATE ECONOMY.
WHEN IT COMES TO DEALING WITH THESE LARGE CORPORATIONS,
AN INDIVIDUAL BUSINESS PERSON OR AN INDIVIDUAL FARMER DID NOT
HAVE MUCH BARGAINING POWER,
AND THE CO-OP MOVEMENT IS ONE ATTEMPT TO TRY TO DEAL WITH THIS
BY ORGANIZING MANY INTO ONE COMPANY.
ONE COMPANY THEN WOULD NEGOTIATE THE PRICE INPUTS
AND ALSO NEGOTIATE THE PRICE OF THEIR OUTPUTS.
THE WORLD ECONOMY WAS CHANGING
BECAUSE OF THE CREATION OF THESE CORPORATIONS,
AND NORTH DAKOTA'S ECONOMY TOO WAS GOING TO CHANGE.
BOTH POPULISM AND PROGRESSIVISM FAILED IN NORTH DAKOTA.
BOTH OF THOSE POLITICAL MOVEMENTS
TRIED TO ORGANIZE THE FARMERS
TO TAKE CONTROL OF THE MEANS OF PRODUCTION, IF YOU WILL--
BOTH THEIR FINANCIAL NEEDS AS WELL AS THEIR GRAIN MILLING
AND TRANSPORTATION NEEDS, AND THEY BOTH FAILED.
(narrator) EVEN AS LATE AS WORLD WAR I, OUT-OF-STATE GRAIN BROKERS
CONTROLLED THE PRICE FOR NORTH DAKOTA WHEAT;
OUT-OF-STATE RAILROADS CONTROLLED THE COST
FOR NORTH DAKOTA SHIPPING;
AND OUT-OF-STATE BANKERS CONTROLLED THE INTEREST RATES
ON NORTH DAKOTA FARM LOANS AND MORTGAGES.
BY 1915, NORTH DAKOTA WAS READY FOR REVOLT.
SOMETIMES POLITICS ARE LED
BY CHARISMATIC LEADERS,
AND YOU HAD IN A.C. TOWNLEY
A CHARISMATIC LEADER,
SOMEONE WHO KNEW HOW TO ORGANIZE,
SOMEONE WHO HAD BEEN A SOCIALIST PARTY ORGANIZER
BUT HAD BEEN FIRED BY THE SOCIALIST PARTY IN NORTH DAKOTA
WHO DECIDED THAT, YOU KNOW, THIS IS STILL A GOOD IDEA.
(narrator) TOWNLEY'S PLAN WAS SIMPLE.
TO BREAK THE CONTROL OF OUT-OF-STATE BIG BUSINESS,
NORTH DAKOTA WOULD CONTROL ITS OWN ECONOMY
BY CREATING INDUSTRIES THAT WOULD BE OWNED,
NOT BY BIG BUSINESSES, BUT BY THE STATE.
THE LEAGUE'S PROGRAM,
I WOULD CALL IT
"STATE CAPITALISM," ACTUALLY.
IT WAS THE IDEA OF THE STATE INTERVENING
TO ACTUALLY HELP, NOT JUST SAVE, BUT HELP EVOLVE
EXISE NG TYPE OF CAPITALISM INTO SOMETHING
THAT WAS MORE COMPETITIVE WITH THE OUTSIDE ECONOMY,
WHICH WOULD BE CORPORATE CAPITALISM.
(narrator) TOWNLEY'S NONPARTISAN LEAGUE
SWEPT ACROSS NORTH DAKOTA LIKE PRAIRIE FIRE.
THEY REALLY LIKED THE IDEAS
THAT TOWNLEY PRESENTED TO THEM
ABOUT TAKING CONTROL OF THEIR
OWN ECONOMIC--NOT THEIR FUTURE,
THEIR ECONOMIC PRESENT--
YOU KNOW, HAVING SOME CONTROL OVER THEIR LIVES.
(narrator) AT HUNDREDS OF SPEECHES AND MEETINGS,
TOWNLEY AND OTHER LEAGUE ORGANIZERS
RECRUITED A NEARLY FANATICAL FOLLOWING.
(man, as Townley) "THAT IS THE WAY IT IS
WITH THE MONEY THAT COMES FROM THE EAST.
THERE ARE LOTS OF FELLAS PASSING IT ALONG,
AND LIKE THE WATER,
THEY SLOP ABOUT HALF OF IT OUT ON THE WAY DOWN.
YOU FELLAS HAVE BEEN UP AGAINST THAT FOR MANY YEARS.
YOU'VE SEEN THE FELLAS PASSING THE MONEY
DOWN THE LINE IN THE PAIL. THEY DO IT HERE IN THIS TOWN
AND IN OTHER TOWNS IN NORTH DAKOTA AND THEN. . .
(Rozanne) IT WASN'T ABOUT POLITICS INTERESTINGLY ENOUGH.
IT WAS ABOUT THE POLICY,
SUPPORTING A POLICY THAT WOULD HELP THEM REALLY
PUT A STAKE IN THE GROUND AND BECOME SUCCESSFUL FARMERS.
(narrator) IN HIS FIRST 6 MONTHS, THE LEAGUE RECRUITED 26,000 MEMBERS.
(Rozanne) SO YOU HAD AN ORGANIZER
WHO KNEW HOW TO SPEAK THE LANGUAGE OF FARMERS.
YOU HAD BANKS THAT WERE PLAYING INTO THE HANDS OF THE ARGUMENT.
YOU HAD FARMERS WHOSE CROPS HAD FAILED
FOR THE LAST COUPLE OF YEARS,
SO THEY DIDN'T HAVE ANYTHING ON HAND.
EVERYTHING ALIGNED AT ONE TIME AND ONE PLACE,
WHICH MADE IT POSSIBLE.
(narrator) IN 1916, AFTER ONLY A YEAR OF ORGANIZING,
THE LEAGUE SWEPT INTO POWER.
IN 1918, IT ENGINEERED A POLITICAL LANDSLIDE.
(Rozanne) IN 1919, THE NONPARTISAN LEAGUE TOOK CONTROL
OF THE HOUSE OF REPRESENTATIVES OF THE SENATE,
THE STATE SUPREME COURT, AND THE GOVERNOR'S OFFICE.
(narrator) NOW THE LEAGUE HAD THE POWER
TO IMPLEMENT ITS INDUSTRIAL PROGRAM.
(Rozanne) THERE WERE 3 BILLS THAT THE LEGISLATURE IN 1919 PASSED.
THE ONE CREATED AN INDUSTRIAL COMMISSION
WHICH INCLUDED THE GOVERNOR, THE ATTORNEY GENERAL,
AND THE SECRETARY OF AGRICULTURE AND LABOR,
AT THAT TIME WS WH I HE WAS KNOWN, TO RUN THE BANK,
AND THAT WAS THE INDUSTRIAL COMMISSION,
THOSE 3 ELECTED OFFICERS WERE GOING TO RUN THE INDUSTRIES.
AT THAT TIME ALL 3 OF THOSE OFFICERS,
OF COURSE, WERE NONPARTISAN LEAGUERS.
SO THE FIRST BILL CREATED AN INDUSTRIAL COMMISSION.
THE 2ND BILL CREATED THE INDUSTRY AS ITSELF--
CREATED THE BANK OF NORTH DAKOTA AND ALLOCATED FUNDS,
"START-UP FUNDS" WE WOULD CALL IT TODAY, TO THE BANK.
AND THEN THE LEGISLATION ALSO ALLOWED FOR THE CREATION
OF THE STATE-OWNED MILL AND ELEVATOR.
THE 3RD BILL ALLOWED THE STATE TO SELL BONDS TO THE TUNE
OF AROUND $12 MILLION TO FUND THE INDUSTRIES.
AND OSE 3 BILLS WERE INTRODUCED IN JANUARY
AND WERE SIGNED INTO LAW IN FEBRUARY.
YOU KNOW, THEY HAD LESS THAN 2 MONTHS.
THEY HAD PASSED THOSE 3 BILLS,
AND BANK OF NORTH DAKOTA WAS ON ITS WAY.
(narrator) FOR FARMERS WHO WERE PAYING SKY-HIGH INTEREST RATES
TO TWIN CITIES BANKS, THE BANK OF NORTH DAKOTA'S
FARM LOAN PROGRAM WAS A GODSEND.
IN ITS FIRST 5 MONTHS OF OPERATION, THE BANK RECEIVED
MORE THAN $8 MILLION WORTH OF FARM LOAN APPLICATIONS
THAT WERE SUPPOSED TO BE FUNDED BY THE SALE
OF $10 MILLIONN STATE BONDS-- BUT THE BONDS WEREN'T SELLING.
(Rozanne) IT'S FASCINATING WHEN YOU THINK ABOUT IT.
HERE'S THE STATE OF NORTH DAKOTA
WHO'S GOING TO CREATE A STATE-OWNED BANK
WHICH RUNS DIRECTLY IN THE FACE OF PRIVATE CAPITAL,
PRIVATE BANKING, BANKING AS WE KNEW IT IN THE STATEE.
THEY HIRED W.F. CATHRO WHO WAS THE FIRST PRESIDENT
OF THE NORTH DAKOTA BANKERS ASSOCIATION
TO BE THE DIRECTOR GENERAL OF THE BANK.
SO THEY CREATE THIS SOCIALIST INSTITUTION.
THEY HIRE A BANKER,
A WELL-RESPECTED BANKER TO RUN THE BANK.
HE THEN GOES TO THE BANKS IN THE STATE AND SAYS
"I HAVE $10 MILLION WORTH OF BONDS TO SELL YOU."
AND AS SOON AS YOU BUY THESE BONDS, I CAN THEN MAKE LOANS
TO FARMERS CHARGING 2% LESS INTEREST THAN YOU'HAREING.
SO COME AND BUY THESE BONDS FROM ME.
AS IT'S LIKE THE STATE BANKERS ARE SAYING
"YOU GOTTA BE KIDDING ME!"
THE MINNEAPOLIS BANKERS ARE SAYING,
"YOU WANT US TO BUY THE BONDS
SO YOU CAN CUT OUR LENDING TO NORTH DAKOTA FARMERS?
I DON'T THINK SO."
(narrator) BY 1920, THE BANK OF NORTH DAKOTA WAS ON SHAKY GROUND.
BECAUSE THE BONDS WERE NOT SELLING,
THE BANK WAS FORCED TO FREEZE ALL FURTHER FARM LOANS.
EVEN WORSE, THE BANK WAS EXPERIENCING
SERIOUS CASH FLOW PROBLEMS.
(Scot) WE HAVEN'T HAD A LIQUIDITY CRISIS IN THE STATE'S ECONOMY
LIKE THE ONE WE HAD
IN THE 1920S, AND IT'S PROBABLE
THAT A CRISIS IN THE '20S WAS
EVEN WORSE THAN THE ONE IN THE '30S
JUDGING ON THE NUMBER OF BANKS THAT WENT UNDER.
(narrator) THE ECONOMIC CRISIS GAVE LEAGUE OPPONENTS
THE OPENING THEY NEEDED.
THE INDEPENDENT VOTERS ASSOCIATION WAS WELL FUNDED
BY OUT-OF-STATE INTERESTS AND DETERMINED
TO KEEP THE BANK FROM SELLING THE BONDS IT NEEDED
TO FINANCE THE FARM LOAN PROGRAM.
THE SALE OF THE BONDS IS
IN SOME WAY THE MOST INTERESTING
AND FASCINATING ASPECT
OF THIS WHOLE BUSINESS
BECAUSE IF THOSE REAL ESTATE BONDS SOLD,
IT MEANT THE BANK WOULD BE IN BUSINESS.
AND SO THE INDEPENDENT VOTERS ASSOCIATION,
THE NORTH DAKOTA BANKERS ASSOCIATION,
ANYBODY WHO WAS OPPOSED TO THE IDEA OF A STATE-OWNED BANK
WORKED TO STOP
THE SALE OF THOSE BONDS.
AND THERE IS A 30-MONTH PERIOD
IN NORTH DAKOTA HISTORY,
I DON'T THINK WE'VE EVER SEEN THE INTENSITY,
THE POLITICAL INFIGHTING, THE STRUGGLES
BETWEEN PEOPLE WHO WANTED TO SELL THE BONDS AND WALL STREET,
"THE WALL STREET JOURNAL," "THE CHRISTIAN SCIENCE MONITOR,"
THESE NATIONAL MAGAZINES INVOLVED IN THE ARGUMENTS
AROUND WHETHER NORTH DAKOTA CAN SELL THOSE BONDS.
THAT HELPED THE OPPOSITION,
NOT ONLY COALESCE, BUT
TO ATTRACT ADDITIONAL MEMBERS.
(Rozanne) WELL, IT WAS VERY INTERESTING TO ME
THAT BOTH GREAT NORTHERN AND THE NORTHERN PACIFIC
PRETTY MUCH GAVE LAWYERS TO THE OPPOSITION.
THE COURT CHALLENGES BOTH AT THE DISTRICT,
THE STATE, AND THE SUPREME COURT LEVEL--
CHALLENGING THE SALE OF THE BONDS AND THE RIGHT
OF NORTH DAKOTA TO CREATE A STATE-OWNED BANK.
THE WHOLE ARGUMENT ABOUT WHO'S GOING TO AUDIT AND WHO'S GOING
TO MAKE SURE THAT THE BOOKS AREN'T CROOKED.
IF YOU THINK WE HAVE INTIMIDATION TODAY,
THIS IS NOTHING COMPARED TO WHAT WAS GOING ON IN 1919 AND 1920.
(Scot) PEOPLE IN THIS STATE
ARE GENERALLY PRETTY SKEPTICAL ABOUT GOVERNMENT ANYHOW,
AND HERE THEY WERE KIND OF GOING OUT ON A LIMB,
PUTTING FAITH IN THESE POLITICAL LEADERS
THAT THEY WOULD BRING ABOUT
A POLITICAL REVOLUTION THAT WOULD HELP THEIR LOCAL ECONOMY,
BUT THE MINUTE THAT THAT POLITICAL REVOLUTION
LOOKED LIKE IT MIGHT BE TAINTED WITH CORRUPTION
OR TAINTED WITH SPECIAL FAVORITISM
FOR CERTAIN INDIVIDUALS IN THE STATE--
THAT JUST FED BACK INTO THE NATURAL CYNICISM
THAT SEEMS TO BE CHARACTERISTIC OF AN INDEPENDENT FARMER.
SO THE MINUTE THAT THE LEAGUE WAS TAINTED, WHETHER
THEY WERE ACTING POLITICALLY
OR WERE ACTING ECONOMICALLY
I GUESS DOESN'T MATTER NOW
BECAUSE THE PUBLIC DECIDED THAT
THEY WERE ACTING POLITICALLY.
(narrator) IN 1921, WITH THE BANK ROCKED
BY ALLEGATIONS OF FAVORITISM AND MISMANAGEMENT,
NORTH DAKOTA BECAME THE FIRST STATE IN THE NATION
TO RECALL AN ELECTED OFFICIAL FROM OFFICE.
AND IT RECALLED NOT JUST ONE,
BUT THE ENTIRE INDUSTRIAL COMMISSION.
VOTERS REMOVED THE NPL GOVERNOR,
ATTORNEY GENERAL,
AND AGRICULTURE COMMISSIONER
FROM OFFICE AND REPLACED THEM
WITH IVA-ENDORSED CANDIDATES.
THE BANK OF NORTH DAKOTA WAS
NOW IN THE HANDS OF ITS GREATEST OPPONENT.
(Rozanne) THE BONDS WERE SOLD
THE DAY BEFORE THE OPPOSITION
TOOK CONTROL OF THE BANK.
AND SO FINALLY THE OPPOSITION,
THE IVA, WHICH WAS OPPOSED TO STATE-OWNERSHIP,
WHICH WAS OPPOSED TO THE BANK OF NORTH DAKOTA,
ALL OF A SUDDEN HAD $12.3 MILLION, AND I THINK
THAT'S REALLY THE IRONY OF THE BANK OF NORTH DAKOTA.
THE BANK ONLY BECAME SUCCESSFUL
ONCE THE OPPONENTS OF ITS BANK TOOK CONTROL OF IT.
IN SOME WAYS THE BANK OF NORTH DAKOTA IS AN EXAMPLE
OF PRAGMATIC POLITICS OVER POLITICAL PHILOSOPHY.
I MEAN, THE AMAZING THING IS,
THAT THE IVA DIDN'T SHUT DOWN THE BANK.
AND IT SHOULDN'T BE AMAZING BECAUSE--
HEY, I HAVE A BANK AT MY DISPOSAL.
I'M GONNA SHUT THIS DOWN? I DON'T THINK SO!
(narrator) ALTHOUGH THE BANK NOW HAD FUNDS FOR ITS LOAN PROGRAMS,
THE IVA WAS CAUGHT IN A TRAP.
VOTERS EXPECTED THE BANK TO MAKE FARM LOANS,
BUT THE FARM ECONOMY WAS COLLAPSING.
(Rozanne) IT COULDN'T HAVE COME AT A WORSE TIME.
THE AGRICULTURAL DEPRESSION IN THE STATE,
NOBODY WOULD BE LENDING MONEY.
I SUSPECT THE MINNEAPOLIS BANKS WERE LAUGHING THEIR HEAD OFF
ABOUT THIS TIME BECAUSE ALL OF A SUDDEN
THEY WERE OFF THE HOOK FROM HAVING TO LEND.

IN SOME WAYS, I THINK PROBABLY THE NPL'ERS WERE GLAD
NOT TO BE IN CONTROL OF THE BANK AT THAT TIME
BECAUSE THE IDEA OF CREATING AN INSTITUTION,
LENDING MONIES TO THE FARMERS, AND THEN BEING A BANK
THAT HAD TO FORECLOSE ON THOSE SAME FARMERS
TO PROTECT THE INVESTMENT.
I THINK IT WOULD JUST HAVE WRETCHED THEIR HEART OUT.
I GOT $100 BID. THANK YOU SIR,
PAY ON 20, I GOT 10 NOW,
20 NOW, 20 NOW, 10 NOW,
20 NOW, 20 NOW, 30 NOW, 30 NOW,. . .
DURING THE DEPRESSION
THE PER CAPITA INCOME
OF NORTH DAKOTA WAS $142,
PER CAPITA INCOME $142-- THAT'S 40% OF THE NATIONAL AVERAGE.
THERE'S GREAT POVERTY IN THIS STATE, AND SO HERE'S THE BANK
HOLDING THOUSANDS OF LOANS OF PEOPLE WHO COULDN'T PAY,
WHO MIGHT STILL BE LIVING ON THE FARM, STILL BE
LIVING ON THE LAND, BUT CAN'T PAY THE MORTGAGE.
(woman) "DEAR SIR, I AM ENCLOSING FOR YOUR INSPECTION
JUST MY PREDICAMENT AT PRESENT.
IS THERE ANYTHING YOU CAN DO
TO PREVENT THIS FORECLOSURE OF OUR HOME?
WE ARE AT OUR WIT'S END TO KNOW WHAT TO DO,
AND AS MR. MUELLER HAS OWNED AND FARMED
THIS QUARTER OF LAND FOR OVER 40 YEARS,
IT WOULD BE ALMOST HIS DEATH NOW TO BE TURNED AWAY WITH NOTHING."

(Rozanne) I WOULD GO INTO THE RESEARCH AT THE STATE HISTORICAL SOCIETY,
AND I WOULD COME OUT IN TEARS
'CAUSE I WAS READING THROUGH ALL OF THESE FARM LOAN FILES.
I MEAN, THERE'D BE SCRAPS OF PAPER, AND I MEAN--
AND THINK ABOUT A TIME
WHEN PAPER AND PENCILS WERE SO RARE.
I COULD IMAGINE THESE PEOPLE WRITING WITH A STUB OF A PENCIL:
"I DON'T KNOW WHY YOU KEEP
SENDING ME LETTERS ASKING FOR MONEY.
I DON'T HAVE ANY. I TOLD YOU THAT."
(narrator) AS THE DEPRESSION WORSENED,
THE IVA-CONTROLLED BANK FOUND ITSELF IN THE POSITION
OF HAVING TO FORECLOSE ON FARM AFTER FARM.
(Rozanne) AT ONE POINT IT OWNED SOMETHING LIKE 6000 FARMS,
BUT IT HAD TO OWN THEM TO PROTECT THE MORTGAGES,
TO PROTECT THE REAL ESTATE BONDS IT HAD TO OWN THE FARMS.
(narrator) IN 1932, NPL MAVERICK WILLIAM LANGER
WAS ELECTED GOVERNOR ON THE STRENGTH
OF HIS CAMPAIGN PROMISES TO PROTECT FARMER INTERESTS.
(Rozanne) THIS IS WHERE LANGER CAME IN
WITH HIS FORECLOSURE MORATORIUM,
ILLEGAL OR NOT, IT DIDN'T MATTER.
WHERE HE JUST SAID OKAY,
ENOUGH, WE'RE NOT GOING TO FORECLOSE.
AS LONG AS THE FARMERS ARE LIVING ON THEIR LAND,
WE'RNOT E ING TO FORECLOSE.
(Scot) HE THEN WAS SEEN AS THE COMMONSENSE INDIVIDUAL
THAT WAS GONNA REIN GOVERNMENT BACK IN,
WOULD TAKE THE INSTITUTIONS THAT HAD BEEN D,
WOULD MAKE THEM OPERATE IN A MUCH MORE RESPE MABLER.
I THINK THAT LANGER
WAS NOT NECESSARILY
ACTING IN A LEAGUE WAY.
HE WAS ACTING IN AN FDR WAY, IF YOU'D LIKE.
THE MAGNITUDE OF THE CRISIS IS SUCH THAT THIS CALLS
FOR MEASURES THAT WE WOULD NOT NORMALLY USE.
AND IT AT THE SAME TIME GAVE PEOPLE SOME TIME HERE
IN THE STATE TO GET THEIR FINANCIAL HOUSE IN ORDER.
BECAUSE AFTER 1936, IF THEY COULD MAKE IT THROUGH
THAT DROUGHT YEAR, FARM PRICES THEN CAME UP PRETTY NICELY
AS WE WENT INTO WORLD WAR II,
AND THEN WORLD WAR II WAS EXTREMELY PROSPEROUS.
(narrator) THE 2-DECADE-LONG FINANCIAL CRISIS WAS FINALLY OVER,
BUT BY THEN THE BANK'S RURAL CREDIT PROGRAMS
HAD LONG SINCE SHUT DOWN.
(Scot) THE ORIGINAL BANK DIDN'T HAVE A CHANCE
TO REALLY GET INVOLVED IN THOSE PROGRAMS
BECAUSE THE EVENTS OF THE '20S RESULTED
IN A WET BLANKET BEING THROWN
OVER THE BANK OF NORTH DAKOTA.
AND THAT WET BLANKET, I SUSPECT,
WAS THERE PROBABLY UNTIL THE 1960s
BEFORE THEY STARTED TO GRADUALLY PULL THAT BLANKET OFF.
AND IN A SENSE ALLOW THE BANK TO BE REBORN AGAIN.
ITS PRIMARY FUNCTION HAS ALWAYS BEEN
A DESPOSITORY INSTITUTION FOR POLITICAL ENTITIES--
COUNTIES, THE STATE, STATE-OWNED INSTITUTIONS.
THAT IS STILL THE MAIN SOURCE OF ITS DEPOSIT BASE.
SO THAT ROLE HAS NOT CHANGED OVER THE HISTORY OF THE BANK.
BUT OVER ON THE LENDING SIDE,
THAT IS ESPECIALLY WHAT HAS CHANGED.
(man) FIFTY MILLION.
THE FIRST ONE ON PAGE, ON THE FIRST PAGE
IS "TO CONTINUE TO BE THE PRIMARY FACILITATOR
FOR LOAN PARTICIPATIONS WITH NORTH DAKOTA BANKS."
(Scot) SINCE THE 1960S, THE STUDENT LOAN PROGRAM
AND THEN THE COMMERCIAL LENDING PROGRAMS
AND THE AGRICULTURAL LENDING PROGRAMS
AND EVEN THE ENTREPRENEUR AND NEW BUSINESS--
THAT'S MORE OF A VENTURE CAPITAL FUNCTION.
NOW, ALL OF THAT HAS BEEN ALLOWED
UNDER THE ORIGINAL LEGISLATION THAT WAS PASSED BACK IN 1919.
SO IT SEEMS THAT NO ONE'S HAD TO GO BACK
AND INVENT THIS INSTITUTION.
ALL OF ITS POWERS WERE CREATED THEN AFTER A PERIOD
OF PENANCE, OF COURSE, FOR THE SINS [chuckles] OF THE 1920S,
AND IT PROBABLY HAS PAID
FOR THOSE SINS I WOULD SAY.
IT'S NOW REDISCOVERING
ITS ORIGINAL POTENTIAL.
(narrator) THE BANK OF NORTH DAKOTA HAS GROWN AND CHANGED MANY TIMES,
BUT IT HAS NOT STRAYED FROM THE ORIGINAL PLAN
LAID DOWN BY THE NONPARTISAN LEAGUE.
(Roger) THEY BEHAVE LIKE A BANK
BUT WITH AN ECONOMIC DEVELOPMENT MISSION, YOU KNOW,
WHICH IS KIND OF THE NEAT THING ABOUT THE BANK OF NORTH DAKOTA.
IT'S STILL PART
OF THAT WHOLE NPL ROOT
THAT WAS PUT DOWN IN 1919,
AND I THINK, WAY BACK THEN I THINK IT WAS REALLY THE INTENT
OF LEGISLATORS WHO CREATED THE BANK OF NORTH DAKOTA
TO CREATE A BANK THAT WOULD HELP
AGRICULTURE AND COMMERCE AND INDUSTRY
AND HELP THE DEVELOPMENT OF THOSE SECTORS OF OUR ECONOMY.
THERE MAY HAVE BEEN A TIME WHEN THE BANK DRIFTED FROM THAT,
BUT I THINK IT'S THERE TODAY.
(John Hoeven) MY VIEW OF WHAT THE BANK SHOULD BE DOING,
I CAME TO THE BANK IN 1993.
I WOULD ENCAPSULATE IT IN SAYING
"THE DEVELOPMENT BANK
OF NORTH DAKOTA."
MY VIEW OF BANKS IS THAT THEY ARE TO LEND MONEY TO PEOPLE
WHETHER IT'S TO START A BUSINESS, TO BUY OR EXPAND
THEIR FARM OR RANCH, TO BUY A HOME, TO GET A SCHOOL LOAN,
WHATEVER IT IS-- THAT A BANK IS SUCCESSFUL
IF IT DOES A GOOD JOB OF LENDING IN ITS COMMUNITY.
THAT HELPS THE COMMUNITY GROW AND PROSPER.
THAT'S WHAT MAKES THE BANK GROW AND PROSPER.
I MEAN, THAT'S MY PHILOSOPHY OF BANKING, I GUESS.
WHEN I CAME TO THE BANK OF NORTH DAKOTA,
THE TOTAL LOAN PORTFOLIO IN 1993 WAS $200 MILLION.
WHEN I LEFT THERE 7 YEARS LATER, IT WAS $1.2 BILLION.
THAT'S A BILLION DOLLARS OVER THAT TIMEFRAME
THAT WE INVESTED IN NORTH DAKOTA FARMS AND BUSINESSES
AND HOMES AND STUDENTS AND ALL THOSE KIND OF THINGS.
ULTIMATELY, AND ITS REASON FOR BEING IS
TO SERVE THE CITIZENS AS THE DEVELOPMENT BANK, HELP,
INVEST MONEY IN NORTH DAKOTA SO THAT THEY CAN GROW BUSINESSES
AND FARMS AND BUILD HOMES AND GET AN EDUCATION.
(Eric Holmberg) SOME OF THE THINGS WE'RE ABLE TO DO
AT THE BANK OF NORTH DAKOTA ARE JUST INCREDIBLE--
NEW INDUSTRIES
THAT WE'VE HELPED DEVELOP.
WE'RE AT THE FOREFRONT
OF EVERY MAJOR ECONOMIC INITIATIVE,
WHETHER IT'S BUILDING AIRPLANES IN GRAND FORKS WITH CIRRUS
OR ETHANOL PLANTS OR HELPING THE FARM ECONOMY.
IT'S RESPONDING TO OUR NEEDS ACROSS THE STATE AND THE ABILITY
TO HAVE AN IMPACT AND TO HAVE A POSITIVE IMPACT ON THE STATE
AND TO REALLY HELP FULFILL THE MISSION OF THE ADMINISTRATION
AS THEY WORK FORWARD IN LOOKING AT THE VISION
FOR THE STATE OF NORTH DAKOTA AND WORKING WITH THE LEGISLATURE
TO FULFILL THEIR VISION FOR WHERE THE STATE SHOULD BE GOING.
SO IT'S BEING AN IMPACT PLAYER IN THE STATE OF NORTH DAKOTA.
THAT'S GONNA BE OUR COURSE FOR AS LONG AS I CAN SEE.
(Wayne) IT'S VERY INTERESTING THAT DESPITE THE FACT
THAT THERE HAVE BEEN SOME ATTEMPTS OVER THE YEARS
TO SELL THE BANK OF NORTH DAKOTA OR TO ABOLISH IT,
THAT THE BANK HAS REALLY WORKED
TO SERVE ITS OWN NICHE
IN THE NORTH DAKOTA ECONOMY.
(Eric) YOU KNOW, I ALWAYS TELL OUR STAFF THAT WHEN YOU ARE
AN ORGANIZATION OF ONE IT'S PRETTY EASY TO BECOME EXTINCT.
OUR MISSION HAS BEEN CONSISTENT--
THAT WE ARE HERE TO ENCOURAGE
AND PROMOTE AGRICULTURE,
COMMERCE, AND INDUSTRY,
SO I DON'T THINK WE COULD EVER GET TOO FAR AWAY FROM THAT.
WHAT WE CAN DO IS BE MORE DILIGENT
IN HOW WE DELIVER THOSE SERVICES
AND TO MAKE SURE THAT WE ARE ALWAYS MARKET-DRIVEN
AND THAT WE'RE ABLE TO REACT TO IT.
(John Hoeven) NOW, AN IMPORTANT PART OF ECONOMIC DEVELOPMENT IS
AS OUR PEOPLE COME FORWARD
WITH CREATIVE IDEAS
AND TRY TO DO THINGS,
IN ALMOST EVERY CASE, FINANCING IS PART OF THE EQUATION.
THAT CREATES MORE JOBS AND MORE OPPORTUNITIES.
THAT'S WHAT THE BANK OF NORTH DAKOTA DOES,
IT NEEDS TO CONTINUE TO BE AN IMPORTANT PART
OF OUR GROWTH AND DEVELOPMENT.
(Wayne) THE FACT THAT IT HAS MATURED INTO THE KIND OF BANK THAT IT IS
REALLY SHOWS WHY IT DOES SERVE A PURPOSE,
EVEN THOUGH IT IS, SOME ARGUE, A SOCIALIST INSTITUTION.
NOW THAT MIGHT SEEM UNUSUAL,
AND IT IS, BUT IT REALLY DOES
UNDERLINE HOW HARD THE BANK WORKS
TO BE A PART OF THE STATE OF NORTH DAKOTA,
OF THE ECONOMIC DEVELOPMENT THAT WE SEE
FOR THE STATE OF NORTH DAKOTA,
AND IT IS A PART OF AN INFRASTRUCTURE,
IS A PART OF THE HISTORY AND TRADITION OF NORTH DAKOTA
AND IS REALLY A FULL PARTNER IN THE STATE OF NORTH DAKOTA.
(Rozanne) IT'S AN AMAZING PART OF HISTORY.
IT REALLY IS AN AMAZING PART OF HISTORY.
I THINK THE INDUSTRIAL PROGRAM AND THE EFFORT
BY THE NONPARTISAN LEAGUE REALLY WAS A WAKE-UP CALL,
BOTH FOR THE STATE SAYING THEY COULD HAVE SOME CONTROL
OVER THEIR ECONOMIC DESTINY AS WELL AS A WAKE-UP CALL
FOR THE INTERESTS, IF YOU WILL--
THE GRAIN AND RAILROAD AND BANKING INTERESTS
THAT THEY COULDN'T TAKE FOR GRANTED
THE PEOPLE OF NORTH DAKOTA OR THE INDUSTRY OF NORTH DAKOTA.
I MEAN, WE'VE GOT A LOT TO BE PROUD OF IN THIS STATE--
AND WE SHOULD BE.
AND THE BANK IS JUST ONE OF THOSE INSTITUTIONS
THAT WE CAN BE PROUD OF,
BOTH FOR CREATING IT
AS WELL AS MANAGING IT
AS WELL AS WE HAVE.
IT'S PRETTY PHENOMENAL.
(Roger Johnson) I THINK THE PEOPLE OF NORTH DAKOTA
STILL BELIEVE A LOT IN THEMSELVES,
AND THE BANK OF NORTH DAKOTA IS KIND OF A MANIFESTATION OF THAT.
IT IS, BY GOLLY, YOU KNOW,
WE THINK WE OUGHT TO CONTROL
OUR OWN DESTINY, AND ONE OF THE WAYS WE CAN DO THAT
IS TO OWN OUR OWN BANK.
WE'RE KIND OF AN INDEPENDENT LOT IN THIS STATE.
I THINK THERE'S STILL QUITE A BIT OF THAT
OLD NONPARTISAN SPIRIT IN NORTH DAKOTA.
YOU KNOW, I THINK IN THE END,
THAT'S WHY THE BANK IS STILL HERE.



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