The Glasgow courier. [volume] (Glasgow, Mont.) 1913-current, 1919-10-24

T
excuse or justification is given that
they deposited twice the amount they
drew of this bum collateral as secur-
ity for the bank. Even then it was
mighty poor banking business and GER
tainly justifies distrust and criticism
of the bank officials who made these
loans.
The truth seems to be that the man.
agement of this bank was completely
under the control of Mr.. Townley and
did about anything he wanted them
to do. 81 want to see," declared Mr..
Townley in a speech in Fargo the 9TH
err day, constitutions built up by the
farmers of this state which no man
can tear down. This bank has been
the mainstay in the financing of the
Nonpartisan league almost since it's
beginning, and we must now make it
the biggest bank in North Dakota"
His proposal was to the farmers of
the state to increase it's capital stock
from $4,000 to $780, 900 by going
down into their pockets and digging
up more than half a million dollars in
cash to buy new stock and reorganize
the bank. We draw the inference
from this that Mr.. Townley realizes
that it needs new capital in large
chunks and reorganization after it's
experience in financing him and his
political party from the very begin
ming, as he says it has.
Now however great a success Mr..
Townley may have made as a politi-
clan, we think none will dispute the
fact that his record as a financier
has been pretty bum, at least from
the standpoint of his creditors who
trusted him with their money. And
even a capital of 100000 may easily
be lost by a bank which is managed
as a political party asset, and not as
a bank run on a sound business basis.
All over the country at various times
the public have had experience of
bank runs partly for political pur-
poses and ostensibly for business pur-
poses. In early days we had some
experience of that kind in this city,
and its depositors had sad knowledge
of the fact too late. Many other cities
Of the state had similar experiences.
In fact every state in the union could
probably match the tale. The Lori
mer banks in Chicago made something
of a splash some years ago because
Senator Lorrimer used them in his
political ambitions. Banks run by pol
iticians who use the depositors' mon
ey to further their political ambitions
have an evil fame all over the coun-
try. And Mr.. Townley frankly tells
us that he has been using this Scan
dinavian-American bank in Fargo as
the financial mainstay of his political
party ever since it's beginning. The
money the farmers of North Dakota
have made is their and if they are
pleased to invest it in a political bank
that is their business. But we have
no hesitation in saying that to our
mind banking and politics are a dam
gerous mixture and pretty sure to
u an explosion when mixed in
strong proportion, and it is our opin-
ion that if the farmers of North Da-
kota will invest that $55O,OOO in gov
erment savings stamps instead Of po-
litical bank stock they will have a far
safer proposition and one likely to
bring them more satisfactory returns
in the long run.
There is one thing about banking
and finances generally. They are gov
erned by laws not made by any state
legislature and which work inevitably
in spite Of any legislative enactment,
and any bank to succeed must observe
these laws or come to grief sooner or
later. A sound bank must be run on
sound business principles. Politics
may often be run on hot air and bunk
successfully for a time. A political
bank is not a sound business propo-
sition. 1t has been tried a thousand
times and temporary success has gen.
orally been followed by business dis
aster. Any farmer who informs him.
self On banking history will learn
that that ic tho +rnth -Croo+ Ea11c