The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1919-10-31
PosT-DATED FINANCE.

we must confess, some little surprise
at the fuss that is being made over
the disclosure of the methods of fl
nancing which were practiced by the
State Socialist, or Nonpartisan League.
bank at Fargo. North Dakota, which
was recently placed in the hands of a
receiver by the state banking board.
Most of the fuss is over the accept
ance OF post-datcd. checks as collateral
security with notes for loans. A farm
er would come in for few thousand
dollars, give his note Of hand for Il
and then to reinforce the note. draw
his check for similar amount. paw
able to the banks order. OF course.
ne wouldn't have dollar in the bank
for the check to draw upon. But he
would date the check away ahead. saw
three months. ItIcould not be put in
Tor collection until that time. and bv
that time he calculated. or rrofcssed
to calculate, upon having money in
the bank to meet it. go
1t was a delightful arrangement
Tor the borrower. 1t was popular. too
as one might suppose. so that the bani.
was found to be loaded up with srch
post-dated checks to the face value
OF the market price. per pound. Of
waste paper For it is difficult N
imagine anything much more worth
less. than a post-dated check dra,cr
against nonresident deposit. It|
hasn't even the value of a present.
dated check drawn against deficit
because the latter is good basis for ac.
ton. civil or criminal. against the
fellow who dated it. But Won canno,
arrest or sue man for issuing post
dated check. for thousand dollar,
when he hasn't thousand picayuncS
in the, bank, because Won can, rroye
that he won't have the money there
all right. on the date named in the
check Neither has il the value of an
unsecured promissory note, because ~
Iact Y contains no promise to pay. II |
SIMPLY directs the bank to pay the
money at certain future time. with |
OUT giving any assurance or promiss
that there will then be anvzmaney a., |
deposit with which to make the raw.
ment II is simply scrap of paber
But. what puzzles us is why therr
should be such a fuss over II. seeing
that II IS so perfectly characteristic or
the Socialist scheme of affairs in pcn.
eral For what is Socialism after al
but a system CT rost-dated finance
and post-dated, economies, and post
dated craftsmanship? Give it the ooodl
cash IT asks for now. and some time i'll
the future it will repay if It has the
means. Some time in the future auI
men'swill be OF equal ability. Somo
time in the future all will be. of equal
wealth. Here is an order tbrt IL
three -hooped pot shall have ten hoon.
put II bears future date. Her. is
shrewd design for catching larks: but
! is to become effective only when
me skies fall. Meanwhile there Is moi
ne slightest security or assuranc.
gwen that those golden DAYS wiz ever
lawn. or that their conditions viii ever
DC realized; any more than ther, Is
nat the farmer will.have the thon md
dollars nm the bank three mont,s
renee with which 10 honor his rost-
lated check.
we observe that the managers oil
ne bank in question are verv md;p-
,ant over the closing of it. They saw
nat II is all due to political spite. for
Vhicn they purpose to make som .bodvI
mart. That is very sad. We know,
hat political spite sometimes goes =
ong way. but to have il 90. so far as
Q object to the lending out OF per-
ectiy good money on the collateral
.ecurity of post-dated checks-weIl
nat IS certainly going too far IL IL
'tate socialis. bank wants TO lend