Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-10-13
WHERE THE LOAD RESTS

@%E.a4# AA0OS
It is somewhat interesting-and the interest may be
more than academic to q good many people-to trace
the various steps in the financing of the Nonpartisan
league and its associated enterprises, in so far as those
steps have been brought to public attention.
First we have the solicitor on his rounds, seeking
members for the league. These solicitors have been of all
sorts. but the great destderatum has been that of ability
to separate the prospect from his money, or to get him
to promise money IL he had none. The plan has been
wherever possible to interest some farmer in the terri
tory to be worked, the more solid and substantial the
man the better. Whenever such a man could be included
to accompany the solicitor on his rounds and introduce
him to the %neighhors, a great point has been gained.
Solicitors were instructed to collect fees in cash if
possible. Failing this they were to accept notes or post
dated checks. preference being given to the latter. While
the post-dated check is not even a promise to pay. IT has
an advantage over a note in that the man who issues it
can sometimes be frightened into paying it by having MS
attention called to the criminal statute relating to the
issuance Of checks on banks in which the maker has no
funds. These notes and checks were taken from persons
indiscrirninately, without regard to the financial standing
or credit OF the individual.
When this paper was turned in to the league officials
IL represented an unknown value, a value which could
not be ascertained until the effort was made to collect.
In the ordinary course of business no bank would accept
it as collateral at more than a small fraction of its face
value. But the expenses Of the league were heavy, and
ectual cash must De had from some source.
A considerable, quantity Of this miscellaneous paper
was placed in the smaller state banks. no very large
quantity In any one Of those banks. but a large quantity
in the aggregate. Bankers as a rule were not anxious to
handle It. hut the suggestion was conveyed to many Of
them In more or. less direct terms that before long the
Bank of North Dakota would have large sums for rede-
post In local banks; that this bank would be directly
under the control of the league management; and that
it would be quite desirable for the local bankers to cstab-
hsh friendly relations by accepting a good bunch of the
leagues paper. Many Of the bankers saw the point with
sufficient clearness to take over some OF this paper in
exchange for cash.
Then there was the Observation-Disclosures bank
of Fargo. control of which had been secured by persons
of the leagues inner circle. There was q wholesale un-
loading Of this paper on the Fargo bank, according to
statements made by officials who examined it's records,
and according to the admissions of league spokesueu.
The bank itself, when in need of funds. was supplied by
the Bank Of North Dakota. and the Bank of North Da-
kota is supplied by the state treasury, the counties, cities,
villages, school districts, and so forth, all over the state
In other words, hundreds OF thousands of dollars worth
OF paper,- In small denominations, representing debtors Of
all classes all over the state, has been cashed with funds
contributed for public purposes through the medium Of
taxation. II there was q loss it was public money that
was lost, SO who cared?' Moreover. bank deposits are
guaranteed, so that there can be no loss. Thus tho at
tempt has been made to reassure the people.
But If a bank loans money on worthless security
somebody loses. Who is It? The guarantee fund does
not Just happen 1t Is made up Of money collected from
banks In the last analysis 1t is taken from the deposit
tors in all the banks which come under the law, and
when any bank fails Il is the depositors at large who foot
the bill. If the fund is inadequate to meet the losses the
d~epoe1torS in the losing bank must suffer the loss, unless.
az in the case Of the Bank Of North Dakota, it should be
decided to make good the loss out Of the general fund Of
the state.
When we trace the thing down to its ~indigtdua1 an
& ptication we find that IN a good many cases the substan-
tai farmer who has acted as bell wether for the league
solicitor, and has urged his %neighbors to give their paper
n payment Of dues, regardless of their credit or ability.
he has been creating a condition in which he, as a man
OF means and OF good credit. the owner of taxable prop
erty which he cannot hide or dispose OF. will be required
to make good in his capacity as a taxpayer the failure of
some Of his own neighbors to pay debts incurred on his
advice and through. his urging.
In other words. the burden rests on the man who
pays the taxes. and no cannot escape it.