The Washburn leader. [volume] (Washburn, McLean County, N.D.) 1890-1986, 1919-07-25
Bank OF North I I
Dakota Status .
Is Given Them |l, d
cathro Says State. Institution
Can Do Little In Drought "a
Situation x =

~~''
Situation x ."
MIGHT. GET EASTERN MONEY
Bank Of Mort Dakota in Respect To
Crop Conditions in Western
North Dakota >.-,',,4
The bank Of North Dakota's posi-
tioin with respect to the Western
North Dakota crop situation is stated
by Director General F. W. Cathro, in
the following letter addressed to AL
fred Eastgate, county agent Of Slope
county.
We realize that the conditions are
becoming serious and will require
CAREFUL handling. 1t does not look as
though the bank of North Dakota will
be able to meet the situation for the
reason that the short crop area will
probably be quite extensive over moot
of the western half of the state and
it will be beyond the ability of the
Bank Of North Dakoa to materially
relieve the situation. 1t is the in
tention of the management of the
bank to do all that can be done in the
matter of rediscounts and afford all
the relief possible, but the prospects
are that such relief can only be to a
very limited extent. 1t will be some
little time yet before the affairs of this
bank will be in shape where discounts S
can be considered and it is not prob
able any considerable funds will be
available for rediscount purposes be-
fore next tax-paying time. Conse-
Guently, if we give promises Of mater
ial assistance at this time, we would
probable be unable to meet their: re-
Quirements and be doing an injustice
to calities ding ffilIst s:s "
Maintain Relations
I'VE are asking banks to maintain
their present correspondent connec-
tions so that they will still continue
to have some place to go to borrow
money to meet their requirements
beyond the ability of this bank to
serve them. Had their crop come off
like it promised some 80 days or so
ago, the bank would probably be in
position to take care of many more
demands than it will now be able to
do. The large bulk of the funds to
be deposited in this bank will be re-
deposited in the banks in which they
now repose, and such funds cannot
be transferred to rediscount to any
considerable degree without working a
hardship upon the bank and commun-
ity where such funds are now placed
and this we want to avoid.
Might Get Eastern Money
"Of course, there is an opportunity
in the event that we in the meantime
can establish proper eastern .connec-
tions whereby a large bunch of redis-
counts might be send east to some
correspondent bank with which to
bring new money into the state, and
in view of that fact it might be wise
to convert a considerable portion Of
the open deposits into the form of re-
discounts with the local banks, there
by getting paper eligible to pass On to
a correspondent bank for the purpose
of bringing in new money; but it will
take some time to work out that plan.
and it is not feasible to make such ar
rangements until after this bank has
taken over the public funds of the
state. .1.
High interest Rate
"The benefits accruing to loyal
banks under this plan will be that
even though they may have to pay a
higher rate of interest, they will have
she use Of the money for definite
period Of time and for that reason
will doubtless be beneficial. to. the
bank in the long run In any event,
it may seem best that the banks con-
tinue to- maintain i such connections
as they have. at present in order that
they will have an avenue for borrow
ing money beyond the ability Of this
bank to lend Y t.ss s@S ss.. \; 6.
I'VE want to assure youa 81: our de-
1sire to relieve the situation as Tar as
We Ecan, but want to impress upon you
that Che magnitude of the situation
involves more money than We VIII
likely BE- able to divert 70 that purpose
We trust that some Feasible plan may
sse worked Out ia the entire Il & satisfa,c,sr
|esaon sof your: several si.l ties. Vi,
\ s:'s; 3 . 81 Wf cAssIHIRo! ,1,:;
N, II q