The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1917-02-06
HAS
new BANK
GUARANTY
Withdraws Original Meas
ure and Submits Another
Proposed Plan
INTEREST ACT FIGHT CENTER
Divided Report Certain
Indian Resolution Also
Finds Division
INTEREST ACT FIGHT CENTER
(By H. D. Paulson.)

Bismarck, N. D.. Feb. 6.-Senator
Drown Of Cass county yesterday
placed before the state senate a new
bill for the guarantee of bank depos-
its, the plan being founded upon that
established by the state of South Da-
PIT, replaces S. B, No. 107, which Sem
ator Drown withdrew.
Under the original bill that Senator
Drown presented. the plan provided
was Identical with that Of South Da-
kota, with the power Of administrator
centered in the state bank examiner.
In North Dakota, however, the state
banking board is the central power in
the administration Of banking affairs,
and when the first bill was being con-
sidered, Senator Drown determined to
withdraw it and introduce the new
measure, thus centralizing all work in
the present bank governing body
Senator Drown was of the opinion
that too many radical changes would
result If he persisted in his first bill.
The guarantee of bank deposits bill
will get considerable attention, particu-
larly in view Of the fact that the North
Dakota Bankers association, at its
convention in Minot, passed a resoiu-
Rate Of Interest.
H. B. No. IS, which passed the low
er branch Of the assembly and which
reduces the contract rate OF interest
from ten to eight per cent, will come
back to the senate from the banks
and banking committee on a divided
report-the majority for indefinite
postponement, the minority for pass
age. :.
cation, after several hearings held by
the committee. Final action by the
committee is scheduled early this aft
ernoon. Throughout the recent hear
ings of the committee, however, 1t has
been clearly indicated that the report
would be divided, and also, that the
majority is for indefinite postpone
ment.
During the progress Of the hearings
it has been brought out that objections
to the reduced rate of interest lie par
ticularly in the contention that the
western part of the state could not
obtain a money supply at the proposed
rate-and that those who need money
the most, would be unable to get it.
In the handling of money in the
small banks Of the western part OF the
state, it has been pointed out that the
banks pay from six to seven per cent
interest on savings and time depos-
its; that much Of the deposits cannot
be employed during tAe late fall and
winter periods. but must lie idle with
the expectation of financing early
spring and summer operations.
These elements, it is maintained,
combine to force the interest rate up.
If that rate was reduced to eight per
cent some contend the banks would
be unable to handle the situation.
In favor of the reduced interest bill,
It is commended that the security offer
ed by western North Dakota farmers
is on par with the security offered by
farmers elsewhere, and that they are
therefore entitled to the same rate OF
prevailing in other districts.
A condition that enters quite ma
teriaIly into the situation is the short
age of seed grains and wheat in the
western districts this year. and the