The Dickinson press., 1912-10-26
A BANKER
GOVERNOR
NOW l. D. HANNA COULD MIX
"Dlo BuSlNEss" AND POLITICS
TO HIS FINANCIAL
ADVANTAGE
4 GREAT OPPORTUNITY
4 DankerGovernor Could Make @26e
900 to $4,000 for Himself and
Associates on Bank
Deposits.

Deposits.
Congressman L. B. Hanna has r.
peatedly said politics is business"
His statement is true. The only de-
batabie feature Of it IL the question:
"Whose Business?"
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
Gated 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 now saying they
propose making politics their bust
ness.
Mr.. Hanna IL a big business man, a
big banker, directly or indirectly in
serested in a chain of banks CROSS
s%sctioning 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
MI. Hanna, for he has ostensibly CIV
en- more time to politics than to bust.
ness.
It is reasonable to presume that
Mr.. Hanna, az a banker-governor,
would not sacrifice his business in
t~erests, 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
s%eparable. 1t is not saying Mr.. Hanna
would avail himself Of the opportuni-
ty to make $4,000 to $4,000 or more
q year, make it legally without the
investment of n cent other than the
Investment Of q few thousand dollars
for campaign expenses. It is a good
Investment, this Investment in poll
tics, that makes 1t possible to collect
interest in the thousand percentage
column.
Here is a business problem in state
politics hat every tax payer and
those who have not enough worldly
goods to pay taxes on, should care
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 be 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 mans 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 up
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 on deposit approxi.
mately 100000 a year. The banks
are required to pay the state from 2
to 3 per cent interest. The'legal rate
Of interest that may be charged on
loans is IL per cent. Twelve per cent
interest on $4,000, 900 is $240, 900 a
year. This $4,000 interest is paid
to the depositary and the depositary
then makes a division with the state,
gives the state 100000 If it pays the
state 3 per cent, and keeps $780, 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 fg-
ure It out yourself.
Do you think a banker-governor
with the legal opportunity to make
$3.50, 900 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
o do the banks pay interest there
on; 10 the banks under such circum.
stances would take all of the IL PEI
cent they, collect on loaning out state
funds.
The law provides that no deposit
shall exceed n half Of the capital
and surplus Of the depositary. One
Of the banks mentioned has q capital
and surplus Of $780, 00. It could
therefore be legally entitled to 5000.
600 q year Of state funds, and reck-
oned on the legal rate Of interest
charged for loans, make a profit OF
$4,000 a year. With one such bank
alone, a banker-governor could in.
crease his income from $4,000 q year
to $4,000, through politics and bust.
ness. And If he was interested in q
string Of banks he could further in.
crease his income in like proportion.
State funds are now wisely distrib'
uted throughout the state among Up.
proximately 800 small banks.
Do you think . banker-governol
would be inclined to contract this
wide circulation into his " banks
or leave the money where he could
make nothing out Of it? Would It b
. bankers judgment?
Mr.. Hanna insists that politics ID