The Bank of Oregon
Putting Oregon Money to Work for Oregonians
It is time to put Oregonians back to work. It is also time to declare economic sovereignty from the multi-national banks that in large part are responsible for much of our current economic crisis. We can achieve these two goals by creating our own bank.
The Bank of Oregon
Small- and medium-sized businesses are the engine that drives our economy and in recent years we have stopped providing fuel for that engine. Due to fiscal irresponsibility by banks and the global economic crisis, banks have stopped investing in small- and medium-sized businesses in Oregon and across the country. This lack of investment is slowing job growth and stalling our economic recovery. We need financial institutions that will act in the public interest, and help our economy recover. Too many financial institutions are frozen in their lending and we need a program that will help create jobs and get our economy moving again. The Bank of Oregon will use public dollars for public benefit. In short, it is time to make Oregon money work for Oregonians.
How it would work
Currently, the State of Oregon receives billions of dollars in tax revenue every year and in turns deposits it in a handful of large banking institutions. These private banks receive the State of Oregon’s deposits and use them to make loans. Many of these banks are out of state and wind up using Oregon tax revenue to invest and make loans to individuals and businesses far removed from our state.
Or they simply do nothing at all.
Modeled on the enormously successful Bank of North Dakota, the Bank of Oregon is based on a simple premise of keeping Oregon money in Oregon and putting it to work for us. Instead of sending millions of dollars out of state to these banks, we could focus our resources here at home and help build our economy. All state revenue would be required to be deposited with The Bank of Oregon.
The Bank of Oregon in turn would then invest Oregon money in Oregon and utilize our money as a tool for economic development, lending money and making a profit just like any other financial institution.
The Bank of Oregon would take the deposit funds and plow a portion of them back into the state of Oregon in the form of loans to small- and medium-sized Oregon businesses. This is crucial to energizing Oregon’s economy.
The Bank of Oregon would also invest in economic development activities and provide loans to farmers and rural communities for value-added agriculture activity. Finally, just like the Bank of North Dakota, the Bank of Oregon would provide a dividend back to the state based on its earnings.
Operating in the Public Interest
Because it operates in the public interest, The Bank of Oregon would administer state lending programs that promote economic development in key sectors or regions.
Improving Oregon’s Rural Economy
One example of how The Bank of Oregon could work would be to emulate a program in North Dakota. They have created the Agriculture Partnership in Assisting Community Expansion (PACE) program. This program provides loans to farmers that are investing in nontraditional agricultural activities. One method to make agriculture more profitable is to create added value through processing, marketing and packaging.
A loan program like PACE could give farmers the capital they need to create new products and create jobs. Our rural communities have some of the highest unemployment rates in the nation, but a program like this could create new opportunities and jobs.
Creating Small Businesses
Small businesses are the life blood of our economy and the backbone of many communities. Often times the greatest impediment to starting a small business in Oregon is access to loans that allow you to buy the equipment, inventory or space necessary to begin operating. In recent years, access to these loans has all but dried up. It is time to jump start small business and give entrepreneurs the opportunity to realize their dream. The Bank of Oregon will be tailored to target small businesses and fund small business development loans.
Helping Existing Business
Another problem impeding economic growth in Oregon is the lack of capital and support for existing, successful medium-sized businesses in Oregon. Companies who already employ 50 or more individuals have found access to loans and support to grow their business dry up during this recession. The Bank of Oregon will target these Oregon-based companies and work with them to grow according to their needs.
The Bank of Oregon could also help grow new industries in our state by offering targeted mid-size loans to help foster economic development. The first street car built in the United States was produced recently in Oregon. With billions of dollars being pumped into transportation projects, this is the type of industry The Bank of Oregon can help expand.
Partnering with the private sector
The Bank of Oregon is not meant to replace private banking institutions but rather it would partner with private banks in most of its operations. These private banks would also include the many Oregon-based community banks that have been vital partners in the growth of our economy over the last 100 years. The Bank of Oregon will help banks to provide a range of new services and give access to new customers. While more competition will help consumers, we need to make sure we also don’t stifle Oregon’s strong community banks.
Governance
To operate successfully, The Bank of Oregon must not be driven by politics. For this reason, we would propose that a Board of Directors govern the program. The Governor, Treasurer and Secretary of State would each have an appointment subject to confirmation by Oregon’s State Senate. An Advisory Committee made up of banking and finance experts would work with the Board of Directors to set policy.
Conclusion
The Bank of Oregon will help to jump-start our economy now, while we are in a crisis, but it will also help our state diversify our economic base so that we can avoid the next crisis. Small- and medium-sized businesses are the key to Oregon’s future. We cannot simply rely on large, out of state corporations deciding once every 5 years to locate in Oregon. Instead of looking for the next Intel to locate in Oregon we must help a thousand businesses thrive and succeed across the state.
The Bank of Oregon does this. We need to grow small and medium size businesses in Oregon and we can do this with our highly educated work force and with a unique source of capital.
