The Bismarck tribune., 1919-04-14

ffliduN8eE luEuc "lefSOu NOlf NujOT a. H.
Waters former state examiner, and
declared that il the organization of
the bank was completed as wisely there
would be no cause for complaint
Fear Competition. ii
]. J. Nierling, president Of the,
Citizens, National bank Of jamestown,
brought up vital question when he
asked whether the banks Of the state
we.eft to have any assurance that the.
Bank Of North Dakota, with all its
special privileges In the form OF tax
exemptions and other advantages would
not become n competitor for CONNER
(cial business. Fear that the bank
Wonld become n bidder for checking
accounts and individual deposits was
the principal puse Of objection with
which he had come in contact, he said.
"The banks Of the western part OF
the statesare not very enthusiastic
over the idea of simply making loans
and receiving none OF the local de.
.posits. We feel the Bank Of North
Dakota should work along the lines
Of ga federal reserve bank"
an important question which should
y.
believe it the intention Of the Bank Of
North Dakota to compete for private
commercial accounts. Governor Fra
7ier declared that the answer to this
question must await the coming OF
other men who were to have charge
OF or interest In the supervision OF the
bank. He declared to commit the COM
mission on the question.
President james J. Early Of the Bank
OF Valley City pointed cut how easy
/ 1t would be for tax. dodgers to misuse
the Bank OF North Dakota, II 1t accept
cd private accounts, by doing their
banking with their local institution
eleven months and % days out Of the
year and then during the, five days in
the year when bank accounts were be-
ing assessed transferring their de-
posits to the Bank of North Dakota.
end thus making them exempt from
taxation.
Mr.. Farley assured the, comission
that through the operations OF the
federal farm land bank. depriving state
banks of their commissions on farm
loans, and the state. hail insurance law
which will deny the state banks any
earnings through hail insurance, th.,
revenues of these institutions would
he reduced as much as fifty percent.
/ lie assured the commission that, he
was not arguing that thes laws were
wrong, but was merely calling attention
to, their effect to give point to his con-
tehti0n that, these local banks should
not be compelled; to compete with SO
powerful and so much favored an in
stitutlon as the, Bank Of North Dako
tu. The question Z of withdrawing
Iublic funds from local. banks and the
competition Of the Bank Of North Da-
kdta for commercial business were two
points upon which .he believed the
bankers should have definite and early
assurance. 1t was at this point that
Commissioner Hagan suggested, the an
| pnintment of bankers to- work out a
policy for the Bank of North Dakota
ii cooperation with the Industrial com.
mlssiOn. sff2aSi ,'i-S's Ss.. -s'stifs I,
Thanks . Dankers: i :
"We must look further than private
bank profits" said Governor Frazier,
n do not think, however, ftiie p0lieH
OF the Bank OF, North Dakota will be
to injure local banks. We cannot ex-
rect to work out a perfect plan OF
operation at the very start, but it will
be very easy to correct the mistakes
that are made, for the commission has
powe + to change its rules for the Bank
of North Dakota at any time. These
rules may cut down some Of the de
posits in local banks. In,my, opinjdp
some of them should be cut down" -
The governor thanked the1 bankers
Tor their cooperation and ESPECIALLY
expressed appreciation, for the assist
ance which he had q second time re-
ceived from the North Dakota Bankers
association, referring to a conference
held last summer at time when will
rcl orts emanating from the council Of
defense had plunged the state into un-
rest and had resulted in a loss of faith
in the credit Of the: state on the out
side. Hs stated that the. resolutions
adopted and promulgated by the asso-
citation at that time had proved great
help to the administration and that
he had frequently found evidence OF "a
sincere and thorough cooperation up
on the part Of the association and its
individual members.
Manager ]. n. Waters expressed his
! gratitude along similar lines and the
meeting closed in complete harmony,
with the understanding that after the
committee Of five bankers and the state
industrial commission have worked out
a plan Of policy an operation for the
bank, the bankers association will
undertake to see that this scheme is
given due publicity, with view 10
c,unteracting any harmful reports that
lave gone out. s-.s., =
"A. b. Denault of the James River
National Of jamestown, ]. c.. Peters
Of ,Mohall, G. J. Lofthus Of Kloten and
X. c. Fuller Of Beach were among the
other bankers who were present and
who participated in the discussions.
| Mr.. Denanlt was confident the state
would encounter no difficulties in SELL
ing it's bonds In the east providing a
favorable opinion were first obtained
from some reliable firm Of bond attor-
ncys.
NEW COVENANT
TO LET MONROE
DOCTRINE LIVE
t. s----