The Tomahawk., 1919-11-20
Anti-Farmer Pressure Probable
Cause of Move by New
York Houses.
LARGE SALE BY BANK
Lawyer Gives Frivolous Suits az Ex
cuse After Visit From Railroad
Attorney-New State Enter.
prises Not Delayed.

BISMARCK, N. DAN eleventh.
hour refusal Of two eastern bond
houses to take up their options
on state bonds, is characterized
by officials here as chiefly a move
to hold up the farmer program.
The bond houses had offered to
take 5000, GOO Of bank and farm
mortgage bonds on good terms for
tho state.
But strong pressure has un-
doubtedIy been brought to bear
by the anti-farmer interests.
"Judge" N. c. Young, long known
In the state as a prominent pub
lie utility attorney and anti
farmer leader; is said to have
paid special visit to the at
torney for the bond brokers.
Sale Of bonds, however, was
considered a good business propo-
sition rather than q necessity.
The resources of the Bank Of
North l'akota will prevent delay
In the rev public enterprises.
The superficial veason assigned by
the attorney for toe bond houses for
refusal to take the option is an ap.
peal to the supreme court Of the
United States by AZ taxpayers. A fed.
eral district court, sitting at Fargo,
has already decided against the AZ and
the appeal is moved by obstructfon1st
motives rather than, by hope Of sue.
cess. It Is beyond reason to expect
that the federal supreme court would
outlaw all publicly owned enterprises
in the United States.
Evil Use Of Courts.
The message of the attorney to his
clients is an illustration of how reac
tionaries use the courts to delay
popular will:
Replying to your inquiry upon the
North Dakota state bank bonds" says
the attorney, II would say that would
not undertake this matter at this time.
These plans of taking over private
business by the state is matter that
has too many chances of litigation un.
til the whole matter is threshed out.
Every new enterprise Of this character
has to go through the same process
and there are 50 many new questions
presented that should not like to
give an opinion approving them while
they remain judicially undetermined"
Farm Loan Bank Case.
In 1917 New York bond house
made similar move against the Fed
eral Farm Loan bank. This house
suddenly decided to cancel its contract
to sell farm loan bonds In spite OF
the fact that it had found the~market
for them strong. It had sold over
$4,000, 900 worth of bonds In about
two years.
The purpose undoubtedly was to cut
off the income Of the farm loan bank
and thus put It out of business. Con.
gress had refused to give the bank
the right to sell its own bonds or to
take the deposits of postal savings
banks. And the plot would have sue
ceeded had not the sudden war need
for food forced congress to aid the
farmers bank and to give 1t the power
to sell its own bonds.
North Dakota's credit is backed by
state resources of over $2,00o,00o, 900.
1t has practically no debt at the
present time. The Bank Of North Da.
kota has sold over 100000 worth OF
bonds over the counter in the last four
months with little effort.
In addition to using public funds,
the North Dakota bank can raise
great deal Of money by bond-sellins
campaign of its own, and there is talk
Of the possibility of establishing
branches in one or more eastern
money markets.
Not having to make proht, the
bank could pay eastern depositors a
higher rate of interest than com
mercial banks offer.