The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1920-06-18
NEW STATE BANK
FUNCTIONS WELL.
Manager Cathro Discusses
Eastern Balances. Nedeposiis
in n. D. Banks.

1''' r':n"''!:nble >'l",r. CT '.IH y, IA:
e. North ba':n,n l.. :, a>'~:f p. I"r.'
hF ";nh"":;'~ ~inrnt f. -" "::i"",''' - a.
e." l. .'.;;.l Pvr.l:,.3. IL ~" ;"n-
J. 800 i:"j ;,',f..ni>' ;y,,,,t -. : ,~''. IT,
k"!". Jr rrtii!:tr!rl i.t.. III: i:'5' t.
~" ""H 'r"t""nlS O! IHH u: " r:,;:,.
IL" No." t. j'rrs which r'.!r.',',i.' lI,'
Vested Interests p"T~i~''l'!'E :" about
t:'' nl.:,i's Of tie i:rr'i "::d rud,.nyur
!" !'!''"'!i"" the voters '1 :>"st:I IA-
i.'H .'>' it I'll" i. -...t".i TIL
;'"''' "''""'ly p'hI;>.;,' " >.t.:,,j,> nrt-
''''' s.! f'..HS UP nIi -" LIS, Whir'l
c:"!r t. 1:r mind Of t"' N:!rT. The
lAi''r refused to I1i'...,.i .I:,II:, gr.'
'"ii'"''~ reply unless Il W,niI ,l,ay
H." !: If advertising RATES..
l';.:t Of Mr.. Catllr,'> rr',l, f-i|',M+:
'i, h;! a,r the facts ;'> ~ I,li.;i ! al
n'ir'> 1T the irwin Cities: Tn,y are
th"~": ON .June 1G, E'in. prir. 10 liz"
or" hjZny;"n Of the i:;,l.t Of North
bi:"tn. III" banks in NrrlA Dn!;r'n.
~ part Of their rt>rr,r,. Lad on de-
post in banks In Min:"~'In :Il.:,.t,
G'".'"i. in banks in u:n,'r >!:lrS ST.
~. 1:!.";. in other rurr.>u,,Ilrn!
banks in North Dakota .77,7I3.5 .U.,
being Il grand total o: reserves If
stat" haitI's held in "!Er:. bAnks in the
amount Of $2O,772,3E;";. The Bank
Of North Dakota has on deposit at the
present time Gas Of dale of May "a
ittN IN T.,-i,, fNtfx. n
Sln1.02n.:i $2l4.420.12 and $Gl,1"l.OO
respectively ia each IF four different
banks; in Duluth SlH7 ,S121U; in chi.
Gag" %HI.S;3G1; and in New York
$17?.9So.G-making a grand total Of
reserves held by the Bank of North
Dakota outside the stat" of North
Dakota In the amount of Sl.7GiSuI IT,.
Eastern Accounts Necessary.
Every banker, every economist an,
every student Of financial affairs well
knows chat we must carry eastern nr-
counts sufficient to furnish HE nrrrS-
SAry exchange for the tr:nS,ctun Of
business. not only for tn" PURPOSE of
payin. checks held outside the state,
hut also to provide our rI>tu nprS with
drafts or exchange to meet their re.
Guir"n"n,S. The daily tIrlt for til"
current year has averaged about s.
0nn.'N Il day, and il has sometimes
run over S3.thMIOOO Il H:,;. During the
week ending May -. there pa, -Sru
Through the bank H.'"n; items, ;yyrr.
eating $?.>:~, SS737. Witch Volume of
business certainly requires large east
ern exchanges to hnnHIr. During the
pas, six weeks $7,H1,1lI.:'S have been
paid out in the payment Of warrants.
TI"+c exchanges mu>i be paid for in
drafts that are payable ut Far ut the
Federal Reserve bank: consequently
sufficient funds must lie maintained
abroad t" meet iii" payment Of our
float.
In the event that thu Bank u: North
Hahnln Sl!nl.lh establish corr, >I'nl !,'ui
rrii!itnS with the Federal Er, .'!yr
BAN; Of Minneapolis. then il would he
required to keep IN hrIn>ii in The
I, hrrnI Reserve bank of Minneapolis
Ni,it mi inl"'r~t. seven pc" cen II !. )
l"n!nnh deposits and time .!rlr>ir~
maturing within thirty days. and
thrr" rrv r..' If It's tim" .!"pr~.;
sitter thirty days. W!l:.'h
Wni,ll he nn n'n"'nt at the l'r,,.'!,i
tl!llr OF 81 ,';l ,:i2~.Hl In addition 10
that. it Wnuil have to carry an aEi..;l,, |
equal to its ilr,n> nut for ,n''r i", |
which WnU.I amount to 81 .MfH.h1:;.m;
which Wut'l make Il total reserve to
be carried ut the Federal Reserve
bank, based ON it, present fu,liu-~. of
S. $40 'I2.34. all Of which would have
to he carried lIrrr without Interest. |
We would also lEIvc to carry Il ~uii
rirn, reserve f. protect the with |
'lu"al> that are constantly beta"
made by til" various !re;,>llrt.>. and u
pos ih'r r.'lu,,."n in the n'r,,,:lit~
th"' Tive banks are carrying Wili u.s.
Nil rt Nhir', Aril'N lr $: ;ul.'."' J..
l. - 49," i,'",. "..i j., serve h:;>'. r., w.
r>;'Na'>. Njt':..vt interest.
We -. '"'' II. " { rr,iu+ ",.% ;n.>.S