Omaha daily bee., 1919-10-29
"A Townley Bank
From the New York Times.

Just three weeks ago the Scandinavian
American bank at Fargo, N. D., was declared
insolvent by the state banking board and was
put into the hands of receiver. This bank
existed mainly for the benefit of Mr.. Towney's
Farmers Nonpartisan league and divers and
sundry political-fnancial concerns in which the
aspiring genius of that illustrious socialist finds
manifestation. The league and its subsidiaries
owed the bank s432, 2,0oo. The bank had abili-
ties of $l,l06,000, of which nearly $735.00O was
lent in excess of its lawful capacity. Much of
the collateral was of the queerest. In the case
of the Nonpartsan league and its. units post
dated checks. not in the keeping of the bank,
we're the insecurity. "a vast unwieldy, hnan-
cial monstrosity unable to take care of itself,
said the assistant attorney general
To the irrepressbe Mr.. Townley mex
haustible in hope and resources, the closing of
the bank was "just another attempt by our po-
litical enemies to ruin the farmers, this time
through their pocketbooks, and it can't be
done" The attorney general and the secretary
of state, elected the Nonpartisan league
ticket, which they have since renounced. were
responsible for the closing of the bank, against
two of whose officials criminal charges were
made The governor, like them member of
the banking board. called the closing an effort
to wreck and destroy all farmers organiza-
tons" That is the note which Mr. Townley
is bugng to his still responsive leaguers The
bank has been closed by the wicked enemies
of the league for the purpose of running the
league.
The bank must be reopened Mr.. Townley
proposes to restore it, 1t must have capital
of 100000. a surplus of $300,000. He is sure
that it will have $500,000 of deposits on the
opening day. So he gathers the league farmers
of North Dakota and Minnesota Those fortu-
nate citizens flow into Fargo in automobiles
and special trains Like an army with BAN
ners they march through Fargo streets. Mr.
Towney turns his eloquence, his passion, his
contribution compelling suasion upon the faith
full. Resolutions of support rain upon him. The
air trembles with cheers. After the rally stock
statesmen are at work among the farmers, sell
ing them reorganization stock. Other honeyed
persuaders induce them to make deposits in
trust against the great and glorious day of
reopening.
Mr. Townley is said to- have raised from
five to seven hundred million for various
league enterprises. No doubt he can re-es-
tablish the Scandinavian American bank, but
how long can that bank, or any bank conducted
in violation of the elementary principles of
sound banking keep on its feet? And how long
will it take the prosperous farmers of the
league to penetrate the necessarily visionary
nature, and to foresee the inevitable collapse of
combination of socialist schemes, of state
owned enterprises? Political economy and
finance are disowned and dehed while Mr..
Townley's unparalleled aggregation" Of social
ist-agricultural talent" performs in the north
west. If one cannot imagine Mr.. Townley ceas-
ing to crack the whip it is not hard to foresee
the time when the box Office receipts will not
be great enough to run Townley bank. In
deed, Townley bank seems to be pretty ex-
pensive institution for the depositors