Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1920-12-22

ers there are DESTROYS Of extending as
sistance; If it can HI lone in such ~
manner that it will appeal to New
York banking instincts and traditions.
The first demand to be asked by them
would be the endorsement of some
plan by the Twin City Clearing HOus
banks. These banks would no be In
clined to endorse any plan until It had
been approved by all the banks OF
North Dakota.
The proposed organization Of a mill
lion dollar corporation has received
The approval Of Twin City fsnanciers.
providing it is given the support OF
bankers in this state, and they have
promised to endorse the plan, and also
to personally aid in the marketing OF
North Dakota securities. +
The plan as outlined by the organ
ization committee for the. million dol
lar corporation are: ~
Prospectus.
OF a proposed organization OF
and bankers Of North Dakota. 10 AID
in the financing of themselves II
their customers during the present and
similar stringencies: prepared II
submitted by a special APP
pointed by the Executive Council OF
the North Dakota Bankers Associa-
ton. M
To organize a corporation under the
| general laws of the state, With powers
adequate for it's purpose, and as close
~ affiliated with the Bankers Associa-
| ton and the banks, as h laws per-
nit.
1t is proposed that the name of the
! corporation be 1.-THE Bankers Finance
Corporation
That it's capital stock be $1,000
600. 90, and that it be prepared to func-
ton as soon as the amount is sub
scribed and o%ne-fourth thereof paid i'll
and deposited. u-
That it's stock holders or member
| ship be confined to bankers of the
state, that the minimum allotment or
subscription of stockholders repre-
senting any bank be fixed at. $4,000
and the maximum $1,000 90, of which
one-feurth should be paid in at the
time of organization, and the balance
made subject to the call Of the board
OF directors; at the ate Of not more
than ten per cent per month.
That inasmuch as only a very small
amount of the capital stock would,
under the plan contemplated, be put
into active use or service; its paid in
and subscribed capital being mainly
for the purpose of backing up and
making good it's guarantees; payment
for its capital stock woul be made, 10y
depositing the amount called, in the
local DdNkS OIL Tie SuDoCIA " lAt
credit of the corporation. If guaran-
tees and commitments are carefully
and judiciously made, and unless later
on the stockholders should decide to
enlarge the scope of its operations,
only a very small part of its capital
stock should ever be called into active
service.
Legislation would be asked for later
on permitting banks and Trust COM
-~;o - ~,,l,,or;h1 ls~0ot o~1 tn @a N~sx
, shares of its stock in their assets just
as the national banks do stock in the
Federal Reserve banks, also to place
the corporation under the supervision
OF the State Banking Board.
Provision would be made for the
withdrawal at pleasure Of stakeholder:
not indebted to the corporation, and
the redeeming of their stock as is nov
done in the cases Of the Federal Re
serve bank and the Federal LAM
banks, but it is recommended hat thi!
provision be not made effective before
January 1. 1928.
! There would be no personal liabilit!
beyond the difference between tn,
stock subscribed, and the amount pait
: in by any stock holder.
+ Its Purpose.
l Its immediate purpose would be Il
! assemble or mobilize a large share 0
! the $40. 900, 100000 of county, township
: city, village. school. district, and drain
age district warrants, and farm mort
cages. now held in banks of the state
t a ready market for which is not avail
able. and to issue it's debentures or oh
: legations against them. in sucl
' amounts n of such maturities a
would make them readily salable. an,
e to market the same. and make thei
e proceeds Immediately available to tn
: individual banks interested.