The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1919-07-14
BANK HELPLESS
IN FACING FIRST
E N E R GE ICY
Director General Cathro Says
State Institution Can't Help
Drouth Stricken Area
MUST SEEK LOCAL AID
Home Bankers Asked to Main
tain Correspondent Relations
to Get Eastern Money
MUST SEEK LOCAL AID

tain Correspondent Relations
to Get Eastern Money
Although the Bank of North Dakota
does not expect to be able to meet the
situation resulting from the drouth
west Of tile river, this institution, at
the request of Charles Eastgate of Ami
don, county agent Of Slope, was repre-
sented Monday at a conference held in
Dickinson by Stockmen, farmers, bank
ers, merchants and otherwise, who rec
ognize the need of cooperation in the
solution of the Slopes feed and seed
problem. The Banks representative
lis Roy NJ. Halliday, deputy director
Of publicity and audits, who went in
place Of Manager James r. Waters,
who was compelled by other important
demands to cancel his own engagement
at the last moment.
The situation so far as the Bank of
North Dakota is concerned. is summed
~ In the following statement from
Director General F. w. Cathro to
NOuAJS ASCnI IdSLSOICss
BANK IS HELPLESS.
"We realize that the conditions are
full handling It does not look as tho
the Bank of North Dakota will be able
to meet the situation for the reason
that the short crop area will probably
be, quite extensive, over most Of the
western half of the state, and it will be
beyond the ability of the Bank Of North
Dakota to materially relieve the situa-
ton. 1t is the intention of the manage
ment of the bank to do all that can be
done in the matter Of rediscounts and
afford all the relief possible, but the
prospects that such relief can only be
TO a very limited extent. 1t will be
some little time yet before the affairs
of this bank will be in shape where re-
discounts can be considered, and it is
not probable any considerable funds
will be available, for rediscount pur-
poses before next tax-paying time.
Consequently, if we gave promises Of
material assistapce at this time, we
would probably be unable to meet their
requirements and be doing an injustice
to localities needing funds. ~
ASK BANKS TO STAND PAT
"We are asking banks to maintain
their present correspondent connections
so that they will still continue to have
some place to 60 to borrow money to
meet their requirements beyond the
ability of this bank to serve them. Had
the crop come off like it promised some
thirty days or so ago, the bank would
probably be in a position to take care
of many more demands than it will
now be able to do. The large bulk OF
the funds to be deposited in this bank
will be redeposited in the banks in
which they now repOse, and such funds
cannot be transferred to redisc0unts to
any considerable degree without work
ing a hardship upon the bank and the
community where such, funds are now
blaced, and this We want to avoid.
NIGHT GET EASTERN MONEY.
"Of course, there is an opportunity
in the event that we in the meantime
can establish proper eastern cOnnec-
tions whereby large bunch Of redis-
counts might be sent east to some cor
respondent bank with which to bring
new money into the state, and in view
Of that fact it might be wise to con-
vert considerable portion Of the open
deposits into the form Of. rediscounts
with the local banks, thereby betting
paper eligible to pass on to q cores
pondent bank for the purpose of bring
ing in new money; but 1t will take
some time to work out that plan, and it
is not feasible to make such arrange
ments until after this bank has taken
over the public funds of the state.
MAY PAY HIGHER INTEREST,".
"The benefits accruing to local banks
under this plan will be that even though
they may have to pay higher rate Of
interest, they will have the use OF the
money for definite period Of time,
and for that reason will doubtless be
beneficial to the bank in the long run.
This is probable solution of the prob
lem, and it might be worked out. In
any event it may seem best that the
banks continue to maintain such con-
nections as they have at present In or
der that they will have an avenue for
borrowing money beyond the ability OF
this bank to lend.
"We want to assure you of our de-
sire to relieve the situation as far as
we can, but want to impress upon you
that the magnitude of the situation In
wolves more money than we will likely
be able to divert to that purpose. We
trust that some feasible plan may be
worked out to the entire satisfaction OF
your several communities.
''F. w. CATHRO,
"DirectOr General"
TWO MORE SUSPECTS IN
STEELE SWINDLE HELD