Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-10-16

Of past due loans; that furniture and
fixtures were carried at over $4,000
more than they were actually worth
and at $4,000 more than the law per-
mtts banks to carry furniture and fix
lures and banking houses combined:
that $104,515.80 of paper past due
was in the hands of lawyers (not
banks) for collection; that bad debts
would result in a total loss of more
than $46,505.65 without reference to
a single excess item; that directors
kiting rediscounts to pad the reserve;
that false statements were being
made; that the banking department
had been, tipping off the dates on
which examinations would take place
and giving instructions as to how to
evade the law; that two bank exam
iners, one the Oldest in appointive
service In North Dakota, stated to the
banking board as their judgment aft
these facts that the Scandinavian
American bank was hopelessly insol-
vent without reference to a single ex-
cess loan, and recommended that it
should be closed.
The Facts.
I'm the hubub and tumult of un-
founded associations contained in the
affdavits Of the REALTORS, these are the
facts.
'''The undisputed actual facts, in no
way dependent for their accuracy up-
on the incredulity of directors or the
diehon of masked accountant;
they are not controverted by the re-
lator, nor. will they be IN single par
1n = - atynf tn -
situation. Of which the foregoing OILY
touches the high spots. thai. the .1uf.
rectors and officers make their solemn
declaration on oath that the Ssafldi-
naNian- n-American bank is in good A.
lnanctal condition, and upon which. the
REALTORS are inspired to bray at the
individual members of the banking
board who insisted upon taking this
subject, in hand. The epitaphs Of rob-
hers, thieves, burglars and crooks"
sss The Post-Dated Checks.
Turning to the matter of post dated
ischecks, Assistant Attorney General
Sheets said:
Under the statute Of North Dako-
ia, as well as under the great weight
iof authority, to postdate an instru-
ment which otherwise would be a
! check has the effect of making it a
bill of exchange"
1T is perfectly clear from study
Of our statutes, which were presented
for the courts consideration" said the
assistant attorney general, "that a
check. postdated or otherwise, which
is accepted by the payee ceases to be
check and is a bill Of exchange. and
that the maker and endorsor are re-
lieved from all responsibility, and If
matured it becomes certified check.
! "As diligent search as limited time
would permit has not revealed single
instance, either in this country or in
England, where postdated checks have
been considered negotiable instru-
, ments and proper collateral security
flor credit. 1t is not negotiable in
| strument until presented for accept
ance and accepted, prior to that time,
SO, far as the third party Is concern
ned. it may not be enforced as against
the payee and Is but an evidence of
an obligation. 1t is not even con-
! tract.
| I'VE challenge the plaintiffs In this
action to indicate single instance in
English or American jurisprudence
where courts have sustained postdated
where any banking regulatory law or
body has 4 recognized postdated
checks as q proper collateral upon
which to base credit. i5
E.If postdated checks may be negoti-
able for fifty cents on the dollar, then
indeed has the millennium come for
the man who has not the security
upon which credit is based. Does the
weary Willie Of the I. w. w. in a
need money, all he needs do is to Sc
cure q number Of postdated checks,
deposit them as collateral in bank
4 and secure the money. or IL 1t Is de-
sired to purchase farm, q collection
Of postdateda checks secures the money
for purchasing it ID Ii
| Would Mean stsWild Cat.r
! ''If such a rule prevails In this state.
every get-rtch-Quick 4 artist in the
country will appear in North Dakota
and viii launch his enterprise, since
postdated checks are the. easiest thing
In; thu world to secure, except sigma
a deterioration In credit, wildcat bank
ing, ana that which has invitably fol-
lowed Wild cat banking, depreciation
In values, ,sderangement Of legitimate
business, and in the end q SOLDERING up
which will cost the innocent by
stander as we'll rs the credulous
many million dollars.
Sheets concluded with q plea that
]the petition Of the relators '.the IN all
4 things dismissed. = ~ s. = s5
4 sheets Cross- Examined.
Assistant States Attorney NJ sheets
counsel for the banking board, wa
bronson and Robinson during the
Icourse Of his argument. Bronson ask
! ed whether Sheets contended that the
state banking board has authority tc
\ close bark which is mot insolvent
4 Sheets replied that the banking board