Fiscal conservatives often are blind when it comes to alternatives to commercial banking system.
"The fractional reserve banking monopoly that operates under the auspices of the privately owned Federal Reserve System, despises any trace of competition"
But farmers needed an alternative and revolted from the fractional reserve banking...
"The secret of its success seems to be the state-owned Bank of North Dakota, which was established by the state legislature in 1919 specifically to free farmers and small businessmen from the clutches of out-of-state bankers and railroad men. By law, the state must deposit all its funds in the bank, and the state guarantees its deposits. The bank’s stated mission is to deliver sound financial services that promote agriculture, commerce and industry in North Dakota. The bank operates as a bankers’ bank, partnering with private banks to loan money to farmers, real estate developers, schools and small businesses. It loans money to students (over 184,000 outstanding loans), and it purchases municipal bonds from public institutions."