New-York tribune., 1919-05-31
New State Bank
Of North Dakota
To Taboo Politics
Institution Will Be Run
on Strict Business Prin.
ciples, Is the Assurance;
Personal Loans Barred

MINNEAPOLIS, May 25.-Politics
will be taboo in the Bank Of North
Dakota, F. ". Cathro, director general,
and James Il. Waters, general manager
Of the new institution, said in Mime
apolis to-day. Mr.. CathYo and Mr.
Waters were here to consult with
John H. Rich, Federal reserve agent
for the Ninth district, and Theodore
Void, governor of the Ninth Federal
Reserve District Bank regarding poll
cies of the new bank.
The Bank Of North Dakota, which
is scheduled to open soon, will be run
upon strictly business basis, Mr..
Cathro declared. 1t will be so estab-
lished, he explained, as not to disturb
the economic conditions of the state,
and no bank of the state will be COM
pclled to join it.
The policies of the bank, as an
nounced by Mr. Cathro, will be to pro-
vide for operation Of the bank in con
formity to the plan proposed by the
persons who enacted the laws and to
fix in the minds of citizens the ex-
act purpose and scope of the banks
activities 1--WE will establish the plan
of operation along the lines Of safe
economic and banking principles" he
said
Public Fund Survey Made
Among the institutions Of North Da-
kota eligible to membership in the
bank are All state institutions, boards
and associations handling public funds,
Tl0 state banks, 160 national banks,
four trust companies, 2,O84 school dis
tricts, 1,514 townships, SO counties and
all incorporated cities, towns and vii
lagos of the state, according to Mr..
Cathro. He now is making a survey
of the different public funds of
the state to determine the amount
to be deposited with the bank. The law
requires all public funds to be put in
the state bank to be redepositcd with
the various banks of the state.
There will be no sudden calling in
of funds deposited with any OF the
banks of the state" said Mr.. Cathro.
Owe know that there are many insti-
tutions which have been made deposi-
tories of the state for large sums.
These they have lent out. To demand
these funds Immediately would be to
disturb the banks, unsettle the fnan-
cial equilibrium of the state and de-
stroy the very purpose Of the new
bank
I'VE will go about the matter quietly
and call in the funds gradually. They
then will be redistributed among the
A.
state where they are needed. we have
two entirely separate districts in the
state. The Red River Valley is en-
tirely separate from the Missouri River
Valley. When there is crop failure
in one there is usually a good yield in
the other. We plan to make the de-
posits elastic, that they move from the
district Of plenty to the one needing
aid"
Details Left to Officers
Although the rules end regulations
Of the new bank were formulated by
the State Industrial Commission, that
body will have nothing to do with the
business of the institution, he declared.
That will be left to the officers.
"No loans can be made to ind .
viduals," said Mr.. Waters, Except or
real estate, elevator or warehouse re-
ceipts. No favoritism will be shown
nnyboAy 1t will be coldblooded
business proposition, with no favors to
any one
Fer porary headquarters have been
established at Bismarck, they said. A
four-story building there has been
leased for two years. At the expira-
ton Of that time, decision will be
made as to the permanent location.
Heads Of the bond. farm loan, audit.
statistics and publicity departme
will he chosen carefully, they said
Much time will be exercised in obtain
ing the right men for the places. Al
though many applications have been
received they will not necessarily be
considered. they declared, the plan be-
ing to canvass the country for men
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