The Washburn leader. [volume] (Washburn, McLean County, N.D.) 1890-1986, 1912-10-25

HE statement is true. The only de-
batabie feature Of it is the question:
"Whose 6%usiness?"
1t is the debate on that question
that has aroused the American peo.
pie today as they have never been
aroused before. Big interests. syndi.
sated wealth. privilege-seeking corpor-
atoms have been making politics their
business. That's how they became
big and powerful. The people. the
farmers, the mechanics, the small
business man, are o saying they
propose making politics their bust.
0ess.
Mr.. Hanna is a big business man, a
big banker. directly or indirectly in.
terested in a chain of banks o
%sectioning the state. The nucleus Of
his wealth has been rapidly and vast
~ multiplied during the last seven
teen years and during these seventeen
years he has been actively engaged
In politics. So politics and business
must have been highly profitable to
Mr.. Hanna. for he has %ostensibly CIV
en- more time to politics than to bust.
ness.
It is reasonable to presume that
Mr.. Hanna. a S a bankergovernor.
would not sacrifice his business in
~terests, divorce politics and business
II elected governor. There are Ger.
tain business opportunities for a
banker-governor in North Dakota that
places the governorship at a high pre-
MUM, with politics and business in
separable. It is not saying Mr.. Hanna
would avail himself Of the opportuni-
ty to make $25 900 to $4,000 or more
Q year, make it legally without the
investment of me cent other than the
investment of a few thousand dollars
for campaign expenses. It is a good
tics. that makes it possible to collect
interest in the thousand percentage
column.
Here is a business problem in state
politics that every tax payer and
those who have not enough worldly
goods to pay taxes on. should are
fully consider, analyze. and arrive at
their own conclusion.
Section 232. Of the revised code OF
North Dakota reads:
"All funds Of. the state shall he de-
posted by the treasurer in one or
more designated state or national
banks in the state of North Dakota
on or before the first day OF each
month in the name of the state. Such
bank or banks shall be designated by
the board Of auditors in conjunction
with the governor"
What bank or banks" do you sup
pose a banker-governor would desig-
nate as a depositary or depositaries?
His own and those in which he is d.
rectly or indirectly interested. Or the
little banks throughout the state in
which he is not interested?
The state has IN deposit approxi.
mately $4,000, 900 a year. The banks
are required to pay the state from 2
to ; per cent interest. The legal rate
Of in erest that may be charged or.
loans is IL per cent. Twelve per cent
interest ON $4,000, 900 is $4,000 a
year. This s24O.0 900 interest is paid
to the Gepositary and the depositary
gives the state 100000 IL 1t pays the
state 8 per cent, and keeps $180, 900
for the special privilege Of loaning the
peoples money paid in taxes back to
them at an exorbitant rate of inter
est. Take a pencil and paper and hg-
IRE 1t out yourself.
Do you think a banker-governor
with the legal opportunity to make
$180.OO0 a year for himself and his
banking associates. without a penny
investment other than campaign ex-
penses, would throw that opportunity
aside?
The law provides that banks shall
give bond and pay the designated in.
terest on the amounts apportioned to
them. Reports Of daily balances
show that deposits in certain Of Han.
mas pet banks have exceeded the ap-
portionment covered by their bond.
The sum is neither protected by bond
nor do the banks pay interest there
on: SO the b. lks under such circum.
stances would take all of the IL per
cent they collect on loaning out state
funds.
The law provides that no deposit
shall exceed one half Of the capital
and surplus Of the depositary. One
Of the banks mentioned has q capital
and surplus Of $4,000 . It could.
therefore be legally entitled to $780,
900 a year of state funds, and reck-
oned on the legal rate Of interest
charged for loans, make . profit Of
$4,000 a year: With one snch bank
alone a banker-governor could in
crease his income from $1,000 q year
to $4,000. through politics and bust
less. And il he was interested in .
string of banks he coIIi further In.
e his income In like proportion.
State funds are now wisely distrib.
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