New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-10-12
NoM1NG less than three
months after the conviction
of its leaders, Townley and

0iAOS1 y, VII SIdI yes Ol COu-
spring to preach disloyalty in the
United States, the National Nom
partisan League-an organization
of farmers through which political
control of the nation was to have
been achieved-again has emerged
into an unfavorable limelight. The
leagues principal financial hacker,
the Observation-Disclosures Bank of
Fargo, has been declared insolvent,
and the Bank Of North Dakota, a
Fargo depository founded by the
Nonpartisan League State Admin
istration, is under investigation.
With the closing Of the former the
promoting efforts of President
Townley and the unsound pecuniary
policy Of the league have been re-
vealed.
Information furnished by the
North Dakota State Banking Board
shows that the Scandinavian
American Bank loaned $143,824 di-
rectly to the Nonpartisan League,
$4,000 to one Of the leagues COM
uercial companies which was to
have brought consumer and pro
Queer together, $66,182 to the
league exchange, a corporation or
ganized to finance the politics Of
the Nonpartisan League, and $47,~
$50 to corporation organized to
control string Of country news
papers. In addition, several hum
dred thousand dollars worth of COL
lateral appears to have been passed
over by the bank to the companies
while it was supposed to be held in
the bank as security for other loans.
Hundreds of thousands of dollars
in post-dated checks made out by
the farmers in favor of the league
formed the principal collateral for
the direct loan of the league. These
post-dated checks, it is stated, rep
resented about $3,5OO,OOO collected
for political activity. Excessive
and without sound security" was the
State Boards dictum.
No Surprise
These difficulties of the bank
which has been aiding the Non
partisan League will surprise no
one familiar with the wildcat
schemes of Townley," in the opinion
of The New York Tribune, which
paper regards the disclosures as
far more serious blow for the
league than the conviction Of Town
ley in Minnesota for preaching
sedition."
That the counter charge of the
Nonpartisan League supporters
to the effect that the action brought
against the leagues financial hacker
is a conspiracy to wreck the bank
for political purposes-can carry no
weight is the conclusion of "The
Buffalo Express" which makes the
prediction that "the Nonpartisan
League will not be noticeable fac
tor in the next Presidential cleo
ton" by reason of the exposure.
"The Hartford Courant" draws
attention to the extraordinary fnan-
cial management of the insolvent
bank by the following observation
"The institution had capital of
$4,000 with $4,000 of surplus It's
liabilities exceed $1,0OO,O0O.
The Nonpartisan League that hare,
Drained organization for correcting all
misgovernment, had borrowed directly,
or through various Of its curious sub
sidiary corporations, the little matter
of over 1874 900
"As for the depositors, they come
out all right in one sense, for the gen
erous state guarantees the deposits in
atate banks, which means that all the
people will DC taxed to pay OFF those
who otherwise would lose by these
Wildcat operations. The question is.
how long the people will stand for
such public generosity. 1t should be
extended to whoever loses in any bust
ness"
The financial disclosures form a
case of unrequited faith, in the opin-
ion Of "The Pittsburgh Gazette
Times" which sees in the result of
aiding the league an unwarrantable
venture on the part of the bank
management.
The results Of socialistic expert
nent such as the league conducted
IN finance, observes "The Boston
Herald are calculated to bring on
nothing else than "smash- ups. "