The Bottineau courant. (Bottineau, Bottineau County, N.D.) 1895-1929, 1920-10-07
WANT TO WRECK
THE STATE BANK

VOlL NO ON ALL Il " As N41x.
ATED MEASURES AND
PLAY sAFEl
The /. v. A. has initiated five meas
ures to be voted on by the people in
the coming election, November End.
THREE of these measures are aimed
at the DESTRUCTION Of the BANK
Of North Dakota. They are:
az To take from the Bank ALL
City, County, Township and School
District funds,
(2) To restrict the loans Of the
Bank as follows: s'The Bank Of North
Dakota shall make real estate loans
only to actual farmers who are resi-
dents Of the state"
(3) To take from the State Exam
iner the duty of examining the Bank
and to hand this power over to q
"board Of auditors" consisting Of "the
secretary Of state, the state auditor,
and the attorney general"
First, Removal of Deposits
Under the law the Bank is empow-
cred to make real estate loans to the
extent of 80 per cent Of its capital
and 20 per cent of It's deposits. =
It's capital is $2,O00,00O on which,
under the law, it may loan up to
100000.
It's loans on deposits are based on
an average of about $15,000,000 on.
which, under the law, it may loan up
to $3.0OO,sH0.
These two items make the loanable
power Of the Bank on real estate loans
$3,6OO,O00.
3, The deposits from State Depart
ments run about $1,OO0,000 at ebb
to $4,000,O00 at peak.
The deposits from City, County,
Township and School District Treas
urers run from about $10,000,000 at
ebb to $25, 900 at peak.
Hence it is clear that could the !.
v. A. persuade the voters to take from
the Bank the City, County, Township
and School District funds it will have
gained its purpose-the DESTRUC-
TION of the Bank of North Dakota
as banking institution. This becomes
clearer when you remember that, Il
the /. v. A. is successful, the Bank
will have, on which to base the loans
mentioned, about the following
amounts:
First, 80 per cent Of its cap
ltal or
Second, 20 per cent of about
$2,OOO,OOO average deposits &
from State Departments, or 100000
Total loans then possible
would be about -....-..--.-.----..l, ,OOO,OOO
Or loss of $2,60O,000 of it's loan
able power.
Not Only The Bank !
Not only will the Bank of North
Dakota be put out Of business if the
Poison 1. v. A. succeeds in getting
across these laws and amendments,
but with it will go down ..
THE STATE OWNED FLOUR
MILLS
THE STATE OWNED ELEvA-
TORS
THE STATE HOME BUILDING
ASSOCIATION
For all these absolutely depend on
the Bank for the credit necessary to
operate them effectively.
Not only will the Peoples indus
tries and the Peoples Home Building
Association, be destroyed along with
the Bank, but the Dairy Farmers
will be greatly injured, for the reason
that the by-products of the milling
industry are particularly adapted as
feed for cattle, and these by-products
will 90 out of the State with the
State owned mills. And so you can see
that the I. v. A. aims to kill, not one,
but many birds with the same stone.
1 It is to wreck the entire League pro-
gram and to give back the PEOPLES
CREDIT to the PRIVILEGED FEW.
IF you have any doubts as to the
truth Of these assertions as to the in
tention Of the crocodiles without tears
you can easily dispel them by remem-
bering how desperately the /. Y. a.
fought to keep the Bank from float
inr the $40, 100000 Of real estate
bonds authorized by the League laws.
Second, Restriction Of Loans
ssThe Bank Of North Dakota" de-
clares the second law initiated by the
I j. ". "a. "shall make real estate loans
only to actual farmers who are resi-
dents OF the state" Sounds innocent
and apatrioticn doesn't it? But if the
American language means anything,
the enactment Of this law would mean ~