Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-06-21

you should have ten to ono.
II you have a $4,000 bank. you have,
got to have 100000 in order to pay,
II you have a 500, 900 bank you
should have from eight hundred thou
to a million to make it pay.
money there it would pay A. OF
that is possible. 1t does not
make any difference where 1t comes
from And another thing, would it be
the pest source to take a big line Of
DOS from, If one loaned 1t out?.
suppose they would want it? What
shape would it leave the bank in?
Mr.. Waters: They would only have
the condition that any other city bank
IN n state would have, and that
Wouid be shared pro rata.
Mr.. Aamoth: But suppose they got
a million dollars and loaned it out and
II the state should need the none
n make a call on them?
Mr.. Waters: OF course It is absurd,
TO mink they would get a million or.
million?
Mr.. Aamoth: Yes.
~ Mr.. LANCER: You, would have
to have W million deposits there?
A. Yes, with their capital and sur.
Plus they should have from a million
eno a a to two million deposits.
9. What are the deposits?
A. 500. 900.
Q. You had a hundred thousand?
A. Yes.
9. Is there n other information
you have, Mr.. Aamoth. that the bank
ing board should know?
A. | cannot think of ANYTHING
now. SO far as the bank is concerned,
the bank is absolutely good. Their
assets are good with the exception of
tnese notes that l told wou about.
~. We're o in the bank when.
i'oX put IN his note. and Hastings put
In his note? go
A. No, I was not cashier then.
=. How much bank experience
nave o had?
A. Oh, not very much, about 10
years.
Mr.. LANCER: Jim. is that the gem
eral rule, they have got to have ten
Mr.. Waters: Not necessarily. You
bank.
mr.. Aamoth: 1 am speaking of a
bank that is depending entirely upon
d commercial business. Itmay be diff
ierent where you have a country
AMI real estate farm lines and such
things. N
Mr.. Waters: You are speaking
.S WI a City UdNk
mr.. Aamoth: / am speaking of a
real. actual banking business real
bank-and that is what we have got
to run in Valley City. They do not
get much outside of the banking bust
ness, they do not make 5000 a year
from there and they don't
make $500 a year off from farm
loans.
Mr.. Waters: In some country
banks in this state the principal bust
ness is farm loans.
Mr.. Aamoth: Yes.
Mr.. LANCER: Competition is keen
down there?
A. Yes.
Mr.: LANCER: How many banks in
Mr.. Aamoth: Four in the town,
Mr.. Waters: Now Aamoth, I want
TO ask you a question. I am doing this
Tor my own personal qualification, to
show where l stood. l feel this way,
that there is nothing in that national
bar to object to this bank taking
II over. In fact. there was not in the
first place. only this objection we
found to the $4,000?
Mr.. Aamoth: That is absolutely
Mr.. LANCER: The bank was abso-
Mr.. Aamoth: Yes, you a write
to the chief national. bank examiner,
Mr.. Waters: When hat matter was
held up. my examiner. Mr.. Halder-
son, reported they mac lost $3.50 0
deposits.
Mr.. Aamoth: If they lost s125.-
600 deposits. 0 have got to remem
Der that Mr.. Grady had the biggest
part OF that stock. and he was carry
ing a big balance in the bank to be-
gin with. and he is now carrying $780,
900. and he usually keeps his money
Worklng o know. He would not
let IT lay idle and he immediately
took on paper, you know for a good
deal. and Of course that cut down the
balances.
-Ar.W Waters: My idea is simply this,
We want to build up instead Of in
jure. / know how keen competition
is there. and I believe that they
should be allowed to take over the
national banks assets. because 1 don'1
think there is anything in that matter
that can be criticized. now that this
fifteen thousand and some odd dol.
lars had been put back.
Mr.. Aamoth: No, there is absolute.
~ nothing in there that can be criti.
cized now, outside Of these notes
these stock notes-that is all.
Mr.. Waters: That is a state banA
and mot a national bank.
NH. EdIIlOtu. les.
Mr.. LANCER: OF course. the state
bank, double liability would not an.
ply.
Mr.. Aapoth: Oh the bank is alb.
solutely safe, even il you passed
them with these poor notes in there
because they have got a bunch of gooc
farmers-Noltimier n Bill Olsor
and Carignan-they would lose every.
thing they have before they would SCI
Il the hank po NV tho ~ ox,e;1o r -
not worried about that. I am doins
business with them. and l will be a:
long as l can. because it is absolutel,
safe. but it has created a lou of stink
We have a lot of depositors lin Min,
nesota scared to death. and they cam.
to me about it, and I told them, yor
are absolutely safe. You can depend
of it. They should have had thei]
capital and started out with a hun.
dred thousand dollars and handled
this thing right. They would hav.
the incest and cleanest proposition ir
the state if they had incorporated
with a hundred thousand capital, ant
left that fifteen thousand dollar dea
est proposition in the state.
Mr.. Waters: This fifteen Thousand
dollar deal. has cost the bank a To-
of money. ! have felt that. now tina
this matter is fixed up. the g~uarant,
fund commission sat on his a weei
ago today, a week E tomorrow, ant
they went through it very thoroughly
and, there is no politics in that. The,
were personally in favor Of grantinf
a certificate of admission. with tn.
understanding that Jack Hastings
note be paid.
Mr.. LANCER: make a motion that
inasmuch as the fifteen thousand dol
lars has been paid back by Mr.. Hast
ings. and Mr.. H. c. Aamoth. -formerl,
i on chior, NJ tho = Anoorjoona Nc <So-.