The Glasgow courier. [volume] (Glasgow, Mont.) 1913-current, 1919-11-07
NORTH DAKOTA CREDIT.

Sale of $3,00O,O00 worth Of state
bonds, 100000 of which were to be
used as capital for the Bank of North
Dakota, has fallen through, accord
ing to word received here tonight by
the industrial commission, the bond
ing houses of New York and Chicago
having refused to %underwrite the issue.
Associated Press Dispatch.
This is a somewhat surprising state
ment, in view of the positive announce
ment made by Mr.. Townley and the
Nonpartisan league leaders that they
had made a deal with certain Wall
Street firms to purchase these bonds,
and which was given general circula-
ton some weeks ago. The contract
for the sale of the bonds according
to the Fargo newspapers was most
unusual and humiliating to the state.
No such contract was yer made by
self-respecting state within our men,
ory. They were to collect the first
interest payment in advance by de-
Quoting it from the sum paid for the
bonds, they were to have a preference
to handle all other bonds Of the state,
, the state was to keep large sums Of
money deposited with them out OF
state funds, the bank of North Dako-
ia was to collect their interest for
them, and guarantee it, and remit it
without cost to them, and other IN
usual and humiliating conditions. FL
nally the deal was to be called off al
together if the attorneys of these
Wall Street banks said the word. Evil
IDENTIFY they did say the word, for the
firms that made this remarkable con
tract declined to carry it out and the
bonds are unsold and back in the
hands of the North Dakota authorities
Now North Dakota is a rich state
with no abnormal obligations in the
way of borrowed money. Its ability
to pay interest and principal on these
bonds is unquestioned. Why is its
credit kicked around the offices Of
private bankers in Wall street in this
way? These bonds pay a good rate
of interest. There is plenty of prop
! erty back of them, plenty of abilit.
to pay, and yet no credit. In the cas'
of a private citizen the undoubte<
ability to pay is a sound basis of cred
it. In the case of a sovereign stat
it requires more than the will to pay
because a sovereign state cannot b
compelled to pay in court proceeding
as a private citizen can be compelled
If the state of North Dakota refuse
to pay these bonds, principal and in
terest, there is no way to compe
them to pay or to seize their propert
in default of payment. Mr.. Townle
is a socialist and has embarked o
socialist propaganda and socialis
schemes in North Dakota. The major
ity Of the voting citizens of Mort
Dakota have endorsed him as thei
leader and endorsed his schemes. Tn
fact leads to a doubt Of the willing
ness of the people of North Dakot
to pay these bonds to the capitalist
who are asked to buy them and trus
their money to North Dakota. TIL;
is the reason why they hesitate to bu
them and lend their money to tt
state of North Dakota in spite of tt
conceded wealth of the state. The
have aroused distrust in their willing
ness to pay in spite of their ability
pay, and the cause of that distrust
Mr.. Townley and the endorsement
his leadership and plans by the m
jority of the voters. That is the pla
truth of the matter. The credit