The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1917-11-02
EXAMINER SERVES
NOTICE ON BANKS
TO HONOR CHECKS
GIVEN THE LEAGUE
j. r. Waters Comes to As
sistance of Nonpartisans
In Official Letter
KEEPING CEASES"
ON INSTITUTIONS
Organizers Have Many
Unique Methods of Get
ting Names on Checks

The power of the state banking
department Of North Dakota has
been thrown behind the Nonparti-
san league in its task of cashing the
checks of farmers, given to the
league in payment Of membership
dues.
A remarkable letter which has
gone to the state banks over the
signature of J. r. Waters, state bank
examiner, lays the case before the
Institutions, the letter closing with
this rather significant statement:
''Affidavits which have been filed
will be held in allegiance and the
future conduct Of each bank care
fully scanned" ..
Organizers Carry Blanks.
The story back of the handling or
checks by the Nonpartisan league
and its organizers also is interest
ing. Organizers, when they go to the
farmers in quest of the SIC member
ship fee, are fitted with pads OF
blank checks, on which the name OF
the bank is written.
Practically all checks given for
memberships are post dated, falling
due any time from a month to 3
year after the organizer obtains 1t.
In a great many instances. accord
ing to reports that have been made
by various state banks. farmers
have drawn checks on which they
have no funds. The organizer Is In
some cases cited as simply asking
the farmer what bank he did busl-
ness with. and frequently checks
were drawn on banks where the
farmer had no checking account.
Naturally such checks were not
honored by the banks.
Many Have No Deposits.
II has been frequently pointed out
that the drawers of checks on banks
in which they have no checking ac-
counts lay themselves liable to GRIM
inal prosecution. but it also has been
generally established that the farm
ers who drew such checks. had no
criminal intent. merely acting upon
the suggestion of the league organ
izers. The latter receive their COM
mission as soon as they turn the
checks in to headquarters, and that
OF course is the big item with the
field representatives OF the league
Mr.. Waters. who has come TO the
Feseife &C sEthe N0nnarttsan 3eagness
makes no reference to that parueu-
lar class of checks
"A number of banks have also ex-
platned that in numerous instances
farmers have savings deposits not
subject to check. and such checks,
of course. cannot be honored as
against the savings funds.
Waters Letter.
Mr.. Waters letter serving notice
on the state banks, follows:
october 25th. 1917.
To the State Banks. State OF North
Dakota
Gentlemen: Reports have come
To the bank examiner that certain
banks in this state have taken IL
upon themselves to refuse TO pay
checks made payable to different in
dividuals, associations or corpora
tions. drawn by men having money
upon deposit, upon the ostenslble
plea that the checks were obtained
by means of misrepresentation. fraud
or other illegal means.
Affidavits have been fled by some
Of the payees of these checks and
by the drawers of the checks even
though the drawer of the check had
thousands of dollars in the bank
that the cashier OF the bank has,
without any instructions from the
drawer, refused payment Of the
checks, which in many cases were
for small amounts. evidently upon
the theory that the banker was the
guardian of the drawer of the check
and that the drawer OF the cneck
did not know what he was doing
when he signed the same.
You are hereby notified that here
after such conduct on the part OF
any cashier or other officer OF any
bank will not be tolerated by this
department. This department be-
lieyes that the farmers and others
OF this state know what they are
doing when they draw checks.
The refusal on the part of any Of
ficer of any bank in this state to pay
such checks is a violation of the
state banking laws and the same
will be enforced.
In order that there may be no mis-
understanding about this matter /
wish to state that checks payable
10 the Nonpartisan league or any or
panizer thereof constitutes some Of
ehe instances of this kind.
Ahidavits which have been filed
will be held in allegiance and the fu-
ture conduct of each bank carefully
scanned.
Very truly yours,
J. r. WATERS.
State Examiner |