Help Me With Sign North Dakota Banking Presentation

Help me with industry sign banking north dakota presentation later

ok of a banking institute in due to my pleasure to speaker Roseanne junker and I'm just going to read off of our website here after finishing her doctoral dissertation on state-owned bank of north dakota roseanne worked as Governor Jerry Brown's deputy director of California's pension investment unit and as a legislative economist for u.s. Senator Mark Andrews Republican North Dakota she is now the founding executive director of first graduate and organization that helps young people finish high school and become the first in their families to graduate from college she is the author of the Bank of North Dakota an experiment in state ownership 1989 and is featured in the half hour video the Bank of North Dakota on Prairie Public org video links I can't give you a URL here audio wise but her conference presentation will address the questions how is the bmd managed to survive politically and what difference has it made to the economic well-being of the state and roseanne junker please and I have my clock here and bob has asked me to try to limit my comments to half an hour so we can get back on schedule what I didn't tell them is it still on California time so i have three and a half hours first of all thank you probably banking institute for letting me come when i got marks email about the conference i thought how could they do this without me and so I very gently wrote him back an email and said why are you in Philadelphia and and he very kindly took the hint and said would you like to come and I said yes I would like to come so it's very exciting for me to be here in the room with all of you so I just want to thank the the organization for allowing me to invite myself how many people been to North Dakota well that's pretty cool you might have and for those people who haven't been to North Dakota how many people have met somebody from North Dakota and it can't be me and it can't be ed what is your psychologists say about that well I want to just um put you in touch with a few famous people from North Dakota we are not simply a say to farmers but we have had famous TV personalities famous politicians we have had famous news commentators movie stars musicians and I'm going to see if you can guess who they are who's this is a hardest I'm going to give you the hardest one for so that you end up on a very successful note who is a CVS rcvd yeah the CBS news commentator who was the first person to report the fall of Paris in World War two hmm North Dakota he wasn't ever our Merle boy as they were known first name Eric okay good this is fifty percent on that one huh okay now we also have great sports personalities who is the three-time winning coach for the Chicago Bulls and three-time winning coach for the LA Lakers Phil Jackson hundred percent unfilled will stay in the sports mode and who broke Babe Ruth single-season home run record Roger Maris very good I should take your names here go on to music wellglide to music and the day the music died the plane crash with buddy holly ritchie valens Big Bopper who stood in in Moorhead Minnesota who stood in for them when they obviously failed to appear oh this is the hardest one he wrote rubber ball he wrote them take good care of my baby okay fine add Bobby V and you know who plays piano for Bobby B when you're first starting out Bob Dylan so this this is very Midwest oriented presentation how about this one the third no the third sexiest television star of all time no this is behind diana rigg and George Clooney who tied for first please woman Angie Angie Dickinson okay good with two other answers but I won't we do the close to two other answer the lawrenceville up and sitting bull but we'll just leave them for another time I grew up on a farm in North Dakota my parents are farmers my grandparents are farmers and before them their grandparents and norway's were farmers so I comma at the bank of north dakota and i come at the issues that begin the bedroom North Dakota from a very personal standpoint I my grandparents my great-grandparents lost their farm in the depression and my sister and her husband had to stop farming because they couldn't borrow any money so you know in the 80s and so it's very much part of who I am and so when it came time for me to start looking for doctoral dissertation subjects it absolutely came to meet how is the bench of North Dakota managed to survive economic or politically and hasn't made any difference economically and it was an important question for me because I'm the first in my family to go to college and I got my college loans from the bank of north dakota and so it actually the bank essentially allowed me to go to college i went to my local bank and they sent me to the bank north dakota so the bank of north dakota made the first federally guaranteed student loan in 1967 and i took my first one in 1969 and the lake was able to do that because they had been making student loans for 10 years before that no they had made a commitment to the education of the state and so i can answer this question and Bob would be very happy and I could be off the stage in five minutes economic weight yes it's made a huge difference there's probably i would say half a billion dollars in return investment to the shade of north dakota over its lifetime if the banks not quite 100 years old 300 million of those dollars came in the last 10 to 12 years there's a hundred million up until nineteen eighty so between 1980 and 2000 I just soon another 100 million so it could be easily more than half a million and and so it's not only the money that is returned to the general fund but it's also the programs that have allowed the state to develop unique and people oriented programs for the bank like the response to the Minot flat in the Grand Forks flood before if those are hundred year floods and the president of the Bank was saying a couple weeks ago that the governor of North Dakota called me into his office and said Eric we have to event to I don't know what the word was exceptional events we have an exceptional institution like the Bank of North Dakota we've had this exceptional event in Minot which quoted out the entire community now it's up to you to find an exceptional solution to that problem and the bank did so economically there's the no question the question politically is where i think i'm going to where i am going to focus today is how its managed to survive politically and my thinking is we can maybe take some lessons from that since that's really where we are at the at the brown for this act but actually the answer how we survive politically is a very easy answer to because it's such a good idea that once the opponent's took control of the bank they really didn't want to get rid of it because they realized that the tool that it served to help them implement their programs as well so um I thought that that God I did not talk before his presentation in my presentation and in my mind I was sitting in the back there and I was thinking that he was giving us the sky you know he was showing us what could be he was showing us some of the past but he was really inspiring us and asking us to think in a very big way in a very encompass in way and a way to understand how we have to all move forward on this issue it's just not public banking but it's it's the environment and blah blah blah blah blah and I'm actually going to take us really narrow absolutely right down to the ground as we talk about the first two years of the bank and so it's a very critically oriented conversation that I'd like to have a few today in the theory that the Spanish philosopher who said and then we're going to quote him those who cannot remember the past are doomed to repeat it and my thinking is is if we can remember the past we might be able to replicate it so that's my theory on this one North Dakota is a very small state it's about between 640 and six hundred and eighty thousand people it's one of the less densely populated states there's 10 people per square mile only Montana Wyoming and Alaska have less people per square mile and in 1919 when the bank was created you had ninety percent for ninety five percent of the people were engaged in farming and farming in 1919 was horse driven steam engines and there's some cattle but it was primarily a one prop economy and that was elite and the since statehood which is an 1888 the entire political spectrum of North Dakota was run by the party bosses both on the Republican side of the ticket as well as a Democratic side of the ticket and Alexander Mackenzie who actually had been born in Ontario and came down to North Dakota when he was 16 years old around the Republican Party he was a republican national committeeman and he essentially was in the employment of the railroads the banks and the grain elevators and it was those three industries that really ran the state in those industries did not exist in North Dakota they existed in Minnesota and so for 30 years between the statehood and 1889 and the formation of the bank in 1919 the politics of the state was run from Minneapolis and the economy of the state was run from Minneapolis and there were many attempts or many critical attempts to to allow the farmers to take greater control of the economic destiny if you will the farmers alliance outlawed every evil practice the elevator said oh you're out lying all these evil practices we're going to leave the state the Attorney General said togari I won't enforce the laws and he did it so that was that then in the eighteen early 1890s the populist movement started came along and really tried to reform things on behalf of the farmers but North Dakota the legislature meets every two years for six to eight weeks and they had to erect a congressman it took them in 1818 92 took them 61 ballots to elected congressman so by the time they had erected the congressman there was no time to ready to do any legislation so that was the end of the populace are the end of yes the end of the populist movement in North Dakota the next came the progressives a little while later but the progressives were middle class movement and really concerned with issues that dealt more with oh what urban middle class people were concerned with they didn't address any of the issues economic issues relating to farmers the Farmers Union and the co-operative Union started organizing in the early nineteen teens but they didn't have any money on which to operate on and so they were very much timing and which actually there's I have ten tenants in this in this presentation and I just really what that says to me is that there was a need for change there's no question that there was a need for change that ninety-five percent of the population was engaged in farming ninety-five percent of the population was being ripped off by big business and even the bank's agreed us pancho of the currency said that two-thirds of the nationally chartered banks were charging you serious interest rates so there's and the North Dakota Bankers Association agreed with him and yet the there is no political will and to change there's no attempt to regulate private banking and the industry had no attempt had made no attempt to regulate it itself so the nonpartisan we started the bank and I started organizing the farmers the nonpartisan League came out of the Socialist Movement the Socialists are fighting among themselves to trying to decide whether education should be the priority or put action should be the puppet one group felt that without education there could be no political action one group said oh you know Dan the torpedoes whatever all up forget I can't remember that one Katie right the other one said political action well the protocol Action Group and succeeded from the Socialist Party and went on to organize the most successful political organization the state has ever seen and by 1919 the nonpartisan League had taken control of the governor's office the Supreme Court the House of Representatives and the Senate and all of the other state offices and so with that kind of support they in two months created the state-owned bank of north dakota they created an industrial commission to run the bank they gave the state bonding authority to sell bonds to finance the bank and to sell bonds to develop a real estate mortgages or to provide real estate mortgages for the state there was there's real sense that the reason the nonpartisan League was successful is because it had separated itself from the party and it had separated itself from dogma it wasn't about the left or the right it was about we have a real problem here and we need a practical solution hence the word non partisan they ran their candidates on the Democratic side of the ticket they ran their candidates on the Republican side of the ticket and they hired the first president of the North Dakota Bankers Association to run the bank you know so they're very clear that they wanted an institution that was going to be able to survive in the long run yeah and he the president of the Bank made a commitment to work with the state bankers and so one of the things he did after the bank was first organized was sit down with an advisory committee state bankers and say you know try to rest in the antagonism of the critical debates and in the legislature and say now we're here how can we help you how can you help us and he agreed to a couple of things he agreed to no branches of the state-owned bank and he also agreed that the current deposits that were in other banks and see how do I say this the Bank of North Dakota to be financed needed the state's deposits to as working capital if they were to get that working cab that working capital had been now in the five or six hundred banks all the way around the state it's becca north dakota was to be move that working capital from those banks those legs would fail so they agreed to leave the Stasi posits among the other private banks and to sell real to sell bonds to capitalize himself so and and they were selling they needed to sell in today's dollars 160 million dollars worth of bonds both to capitalize the bank as well as to develop the lending policies the bank's mission then if the same mission as it is now to promote agriculture commerce and industry and to serve the people of the state and it's a very broad mission and it gives a tremendous flexibility to policymakers unfortunately I mean one of the reasons that the bank agreed to work with the state bankers is it needed to sell those lawns to somebody and you need two selves on some people who have the money and who has the money but the bank is so and it was quite clear that the president catheter was attempting to assuage concerns critical CERN's of the state head but it was also quite clear that the local bankers are not willing to help them buy the bonds and the kind of the fourth lesson is you can't have a bank without money and so hence the opponents of the bank understood that if they could stop the sale of these bonds they could start a state-owned bank and so the next two years you saw to me I think one of the most exciting and political say it again yeah oh thank you you thought you saw stuff shoved into these two years that you just can't imagine I guess you can't start a bank without money and private the other flip side of that is private capitals not going to give up easy so a new political party was formed called the independent voters Association you also have that sense of independent voters in the same way that you have the sense of non partisan so to see appeal to the independent farmers and the independent voters association was to create a kind of mistrust among both the farmers in the state as well as the finance years outside of the state that this chaos and confusion in North Dakota was such that any investment in state-owned bonds even if though they were guaranteed by the state any investment in those bonds would be an absolute waste of money and so they did then independent voters Association which as you can imagine was financed by Minneapolis by the banks and by the railroads and by the grain elevators and in fact that the attorney who was representing the Ivy a was also an attorney for Great Northern Railroad from let it be the head of referendum they brought forth a refer ndum which forced the fake voters to decide whether in fact they wanted the industrial the Bank of North Dakota and the and the state voters voted seven times yes we want the Bank of North Dakota they had an initiated measure which said we need to have an audit of the Bank of North Dakota and public subdivisions can withdraw their funds both of those paths so the assets of the bank of north dakota were cut in half and the audit your audit actually found no problems with the bank and but it still created that sense of confusion in chaos and what I love is one of the one of the press in North Dakota we should not support the npl and did not support the public banking and effort called it the npl the molding of long-haired radicals and I thought isn't that funny you know how history repeats itself the modeling of long hair out because there's also a recall election so and the people eventually did agree to recall the nonpartisan League governor Attorney General and Commissioner of Agriculture there was also defections within the non-partisan league itself and I think to me in some of the most amazing thing is there are two supreme court challenges to the state-owned bank and came to you came up to the state to the US Supreme Court and the Supreme Court held in sat in fact that you could if the people of the state wanted to have a state-owned bank they could and they had voted seven times devastating but all of this meant that the bonds didn't sell you know all that they there was be an attempt to sell the bonds that would be in a yes we're going to be but a few million dollar sale in 1919 the bankers from the railroads would come and fitter than the lobbyists on the road will come and say you can't buy these bonds we but we're in front of the US Supreme Court you don't know if they're going to be any good or not and so the buyers would refuse to sell would refuse to buy them so anyway long story short the bank did go on at the defensive and this is also one of the things that gar was talking about i mean they went to the people to sell the bonds and they they made a direct appeal to the quote the great class of investors those who work and save and want to put their savings and enterprises that will better the condition of the people so people who bought the bonds included the detroit Mayor the American Federation of Labor the public ownership League the Brotherhood of locomotive engineers in Cleveland the editor of the nation the suffragettes Alice blackwell Clarence Darrow 23 people from 23 different states brought bonds in the Bank of North Dakota to support the supposed to support the system and at the end of 1921 October 1921 a company out of Toledo Ohio Spitzer Warrick finally decided to buy 12 million dollars of the bonds and they decided to buy those bonds because of the success of the small sale and whisk 12 million dollars the Bank of North Dakota could then go on to finance real estate loans to finance the state-owned middle of an elevator to help finance the hail insurance to help finance the homebuilding Association but of course by then it was too late for the nonpartisan League because the day after these bond sold the independent voters Association took control of the governor's office the attorney general's office and the Commissioner of Agriculture so in a 24-hour period you had the sale of the of the bonds which meant that the industrial program would go forward and the Bank of North Dakota Dakota would go forward and then you turned over the control of that bank and the industrial program to people who did it who were philosophically opposed to it and who had spent the last two years trying to defeat it and in the irony is an end this is sort of what I love about this story the irony is is once those guys got control of the bank they said who I mean there was a move to depoliticize it and they said wait a second here we we can see a vision for this bag after all and we should see where it could be helpful and we're going to run it correctly and and that's essentially the story you know over the last 70 years is that it really hasn't mattered as much who has been in control politically in North Dakota and whether it's those people Democrats or Republicans as far as the bank goes there has been a very clear way that the bank has been allowed to serve the people of the state over the last 70 or 80 years and the sense that service is critical the sense that making a profit is not the first priority of the bank it can't afford to lose money but it doesn't have to make as much money as long as it provides the service and that's what it's done and it has needed to protect its assets it has has to run it is a bank after all it has to run right the bank and if it had I think one of the fattest chapters the number of loans that had to put clothes on in the 1930s note had to foreclose on probably 40 million dollars with the farm loans it lost 18 point eight million dollars in farmlands but what the bank did and again this is one of those examples of what a state-owned bank can do it sold those farms back to the original owners i should say this it gave the original owners the opportunity to buy their farms back at cost you know what the bank had in it and I thought I thought to myself put meltdown of the whole mortgage industry what if what if the people had been given the opportunity to buy their homes back you know at what the bank head in it you know and so it's that kind of unique and radical thinking that the bank allows that having a state of the bank allows all of the makers to do I'm pretty much up the biggest question that I have just as a person is and I think it's the biggest challenge as you look to develop public banking the state of North Dakota has given the bank great leeway but it is also still run by a critical body it's still run by an industrial commissioner the governor the Attorney General and the Commissioner of Agriculture and in California at least probably the only people who are less respected in the bankers are the politicians and so how do we manage that issue you know how do managed again it gets back to the control of capital and and do we really oh I don't know the answer so maybe you did anyway thank you