The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1920-12-03
STATE BANK
GIVEN POWER
TO KEEP FUNDS
Industrial Commission to Pass
Resolution Giving Au-
thority
ALREADY IN EFFECT?
CAL fsNl.o% q, NN,,o n..rl Al
ALREADY IN EFFECT?
Said That Two Drafts Al
ready Have Been
#. Refused

l
pected this afternoon to adopt reso-
luton authorizing the director-gen-
eral of the Bank of North Dakota not
to permit withdrawals OF drafts pre-
sented by county treaslsrers, if in his
judgment, they were not made for
urgent purposes.
Although the initiated law became
effe ctive yesterday, it was said at the
! Bank Of North Dakota that only three
drafts had been presented by treas
urers.
It was reported from outside
sources that the Bank of North Da-
kota returned drafts drawn by treas
urers of Logan county and Morton
county with the notation written on
them: payment refused because illeg-
ally drawn" a..
One of the drafts was for $4,000
and the other was for $4,000, it is
said, being drawn by treasurers to
eQualize amounts withdrawn from
banks of their counties by the Bank
OF North Dakota.
Although state officials believe that
this method is the proper one to
handle the situation, others who
! learned Of the resolution declared
that it would make the situation in
the state worse. by giving the Bank
OF North Dakota authority to refuse
to honor drafts Of banks, while the
banks would have no resources but to
honor drafts of the Bank of North
Dakota. The resolution which the in
dustrial commission was expected to
adopt follows:
The Resolution
1.-The initiated law relating to the
deposit of public funds has gone into
effect. The industrial commission
has been advised that this law is not
retroactive and does not affect de-
posits that have previously been
made in the Bank Of North Dakota;
neither does it prevent treasurers of
the various political subdivisions
from continuing to make deposits
with the Bank of North Dakota.
.And since all laws relating to
the protection Of the depositors OF
public funds have been repealed, and
the treasurers are solely and person
ally responsible for same, and since
the Bank of North Dakota is the
state itself, with $2,O00,0O00 900 of as
|leets. it would seem advisable that all
| treasurers continue to deposit the
public funds in the Bank Of North
Dakota and thereby protect the pub
lie funds and themselves, as all such
deposits are fully guaranteed by the
state.
"The Bank of North Dakota has
made loans as follows:
"To farmers of the state: ST.
9O6 ,759. TO various state institu-
tions $S75,OOO TO banks and other
Institutions: S2,767,413.11. And it
has redeposted in< banks, $9,42O,-
43167. Making a total of 'Sl5,-
9G9 ,6O3.7S.
at is clear that should the Bank
of North Dakota withdraw these
funds suddenly from the various
banks, it would mean the closing OF
hundreds of them. The loss in that
event would fall not only on the
banks, but equally on the merchants
and business men, as well as on the
farmers,
'This initiated law passed because
the people were misled and mlsln-
formed. They were told that the
funds of the bank were invested out
side of the state. The undisputed
facts, as now admitted by all, show
that these funds are safely invested
and redeposited within the state in
SUCH a manner as to promote the
best interests of all the people Of the
| state. 3
Situation Needs Patience
"The general financial situation
which confronts the state, the nation.
and the world is due to the destruc-
ton wrought by the war and prof
iteering during the war. The read
iustment is at hand and must be
met with courage, determination, ana
patience, on the part of all. Inc
low prices for grain and other farm
prSducts, and the unfortunate pass
! age of the initiated law relating to
| the deposit of public funds, have
made the situation in North Dakota
more acute. The farmer should not
be compelled to sell his wheat at a
! price $1.25 per bushel below the
actual cost of production. Such
| forced sale would mean the loss or
millions, not only to the farmers but
also to the bankers, merchants and
businessmen, and should be avoided
if possible. The solution is for all
progressive and liberal people, to
co-operate for the common welfare OF
! the state.
"To relieve the situation in part,
the bankers association has advised
the treasurers Of the different poll
tical subdivisions of the state not to
withdraw their public funds from