The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-01-25
BANKER LITTLE, OF BISMARCK,
PRAISES THE NEW STATE
BANKING LAW
NOW IN OPERATION IN DAKOTA
SAYS 1T IS PROTECTION TO
BOTH BANKERS AND
PEOPLE.
DECREASE OF FARM MORTGAGES.
"ossio with Travellers i'm the City
On Business and Pleasure Gath
cred at Local Inns.

! On business and Pleasure Gath
cred Mt Local Inns.
81 think we have the most practical
banking system in the Dakotas of any
state in the Union" said C. B. Little,
! president of the First National bank
of Bismarck yesterday afternoon at the
| Merchants hotel. 1.-THE law now pro-
Vldes for the organization of all banks
other than national banks under the
state law. The bankers of the Dakotas
! think they have the most desirable
banking regulations in the United
states, as the present regulation pro.
| tect both the bankers and the public,
and of course what is beneficial to
the public works to the advantage of
! the bankers. When the law first went
into effect 1t worked great hardship on
! the bankers who carried on a private
banking business. There were about
nifty private banks in the state at the
time with capital varying from $4,000
up. They contested the constitutional
lty or the law, and carried it through
| the lower courts up to the supreme
court. The cases which were brought
by attorneys representing nearly all
the private bankers was merely to test
the validity of the law. The matter
was before the higher court for nearly
year, being continued several times.
! The court finally decided that the law
was constitutional and the only re-
| course left to the fifty or more of these
| private bankers was to comply with
! the provisions of the state law They
/ were given six months to come in I'M
der the provisions of the state law, and
it is a peculiar fact that nearly all of
them put up their capital, and were
regularly inspected by the state bank
| inspector, and given regular state
bank charter. Out of nearly fifty OF
the private bankers who complied with
the state law, and capitalized their or
| CARNATIONS according to it's provisions
! there is not one who would go back
! TO the private banking business. l
| don't know whether it would be prao-
ticable for such law to go into effect
IN Minnesota or any other state where
| there is vast amount of money in
| vested in state banks. 1t would prob
| ably be impossible to pass such a law
| owing to the influence of these private
organiza tons and the amount of
money they represent However, the
present banking law has done much
| for North Dakota, in the way of
general feeling Of confidence in the
state banks. The state law has been
| passed in South Dakota and I am in
| formed that its workings are just as
! Statutory as the, one under which the
state banks Of North Dakota are work
| ing. The bankers are very we'll salts
fin6
nearly all the private banks organized,
thus making the banks of the Dakotas
| among the strongest in the country
| The cause Of the stubborn contest
! which the private bankers made against
| the provisions Of this law, is explained
| by the fact that they We're compelled
| to put up in cash or securities the
amount Of their capital stock, which,
after the courts decided against them.
they Gid with very few exceptions. This
[ think speaks very we'll for the solidity
Of the banks In the Dakotas. Another
| objection they had to the new system
was the taxation of their capital stock,
which they, as private banks, had been
able to elude. The new system is work
ing admirably in our part Of the coun-
try.
II do not think there Is part of the
| Northwest which presents more flatter-
ing prospects for the future than North
Dakota. Since last year the farmers
have paid off theiro mortgages largely,
and taken as a)whole the mortgages on
farm property have been greatly de-
| creased. [ can not say how much the
| aggregate amount has been decreased
but the large payments made during the
| fall and winter1 together with the little
money being put out on this class of
security, certainly indicates that the
amount has been decreased number Of
dollars g noyo
row money in Bismarck now, If they
have good security There has been
plenty of money in the hands of the
bankers for investment, but it has
been a drug onsthe market of late, they
simply don't know what to do with 1t.
The national demand for money is not
great enough at present to decrease the
rate Of interest"
Senators Job w. Lloyd, of Lloyd, and
G. r. Davis, of st. Peter, came down
yesterday and registered at the Mer-
chants. They have, with a number of
other gentlemen, been trying a case. In
which the farmers in the vicinity Of st.
Peter and a number of towns in LIE
Sueur county have been suing the Gil
bert Elevator company for wheat which
the farmers stored with the Gilbert
company, and which they never paid
for. The case has been in the courts
| lOr SOME llllle anu Is On tap IN ftenQe-
pin county.
John L. Green of st. Louis was registered
at the Clarendon hotel yesterday
E. T. Carr. Of Miles City, Mont, Is regis
tered at the Merchats
G. B. Hayward and wife, of Ashland, are at
the Merchants.
E F. Baldwin. Of Boston, is a guest at the
| Merchants
Roscoe Crazy Of Chicago, is at the Ryan
H Low. Of New York, is quartered at the
Ryan.
J. s. Davis, of Bozeman, is registered at the
Windsor.
w. Jordan. of Chicago, was at the Windsor
yesterday.
Held toQthe Grand Jury.
Albert Slater, arrested on the charge of