The weekly times-record. (Valley City, N.D.) 1912-1922, 1919-10-16
NOPARTISAN BANKING

1t was expected that the NOnpar-
tisan league would get North Dakota
into trouble with it's wild business
ideas, but it was not forseen that these
saviors of society would so soon turn
out to be bank destrokers of an ignoble.
sort. The Scandinavian-American
bank of Fargo gave the leaders Of the
league credit on doubtful security,
and the banking board was compelled
to close the doors because of the
queer assets among the collateral.
The banks total liabilities were about
s1,6O0,000, and some 1874, 194 was lent
in excess of the banks lawful capa-
city. Included in the excess loans was
$432, 900 lent to the National Non
partisan league and it's subsidiary cor
porations. The league itself its debtor
for $148,824, and it's Consumers Store
company for $4,000. AS the capital
and surplus were only 1000, the i'm
propriety of making such loans to nom.
productive enterprises needs no en-.
phasis. The character of the collat-
eral is preposterous, most of it being
post-dated farmers checks, and even
those were not in the banks custody.
In the words of the bank examiners:
"The security in almost every case,
is entirely inadequate and in most in
stances constitutes second liens on
the property held as collateral. Total
lack of Judgment and unwarranted
optimism are responsible for the -ex-
tension of credit displayed by the list
of twenty excess loans. In every case
neither the financial standing Of the
makers nor the collateral held by the
bank for the loans justifiee the credit
extended" "a
Even this does not fully state the
case, for: investigation has been or
dered into the condition of about a
dozen banks known in the state as the
Nonpartisan league banks. In the
specific case it is said chat the loss
will be borne by the states : guarantee.
That is less of an argument Ill favor
of the guarantee Of tank deposits
that it seems, for there IS My s1O0,-
900 in the fund, and it will take sew
eral years for the deficiency to be
gathered in from the taxpayers. These
who do not think that the bank guar
antee idea is good one find support
for their view that the guarantee lures
depositors into carelesshess IN the Sc
lection of their bank AMI encourages
the sort of banking now uncovered. ii
Perhaps the misadventure may set
the state to reconsidering the wisdom
of it's election of public officers who
commit the state to bakers 'tzen
Of speculative enterprises. Il .loes not
reduce the total of the losses that they
are not Intentional robberi,s. I1ob-
ably nobody more regrets the nliscar-
rage Of their plans than the men
whose judgment is so discredited by
the result of their adventures. Per-
haps if they had risked their own
money the result would have been the
same. However honest and we'll
meaning they may be, the fact re-
mains that it was not safe to trust
them with other peoples money, and
the same may be said about the credit
of the state, both political and fnan-
ciaI. At least, if North Dakota hard
ems it's heart and stiffens it's back in
support Of it's adventures, other states
may take warning against the same
sort of socialist Missionaries who lift
their heads everywhere and find sup
port in circles which need SOLDERING
and which ought to get it through
such experience.-New York Times.
.--Suy W. g. 9----
w. H. Bublitz, Of McHenry. N. D.,
arrived here last night and is visit
ing old time friends in the city. Mr..
Bublitz was formerly resident Of
fhs cifv and In teaching ut McHenry.