Twin city review. [volume] (Champaign, Ill.) 19??-1929, 1920-11-26
WHO LOSES WHEN THE
PEOPLE WIN? NORTH
pAkoTANs ASK THEMSELVES

The people of North Dakota are ask
ing themselves this question after
reading the first annual g%aort OF the
state Bank of North DAKOTA
The patient farmers OF that state.
after years Of exploitation by pirate
bankers. spectators, and miadlemen.
decided TO Institute bank owned,
operated. and controlled By the peo-
pie Of North Dakota for the purpose
of encouraging and promoting aeri
culture commerce, and industry" M
mediately the capitalist press all the
Wey from Wall Street 10 Puget Sound
attacked them as insane radicals. Boil
sheYists, and destroyers of a safe aad
lsane form of government Thousands
OF dollars were poured out for propa-
ganda attempting to diseredit the idea
OF a state-owned bank Tho North
Dakota Bankers Association refused
to have any dealings with the Bank,
and allied themselves with the hide
pendent Voters Association" 10 defest
the program that had been repeatedly
approved by the people Political at
tackAx having failed, Big business
aalls0 ION the courts to deelMa he
blaw providing funds for the starting
of the Bank unconstitutional. Tie
prompt refusal of the District Court
and the United States Supreme Court
70 override the constitutional right
Of the citizens of North Dakota to
manage their own banking and indus
trial affairs was a striking victory for
the people over private financial and
| Industrial monopoly.
Now that the record Of the Banks
achievements for the first year of It's
operation has been made public and
the smoke screen of propaganda emit
ted by the big bankers and grain ba-
rons has subsidized. we find that this
j neople's bank, instead of "plunging
j the state into financial ruin and
"bankrupting The taxpayers" shows
/ net earnings for the people of the
state of S2a1 $500, or more than 12
lper cent on the capital stock of the
bank
4 More important than the profits
made are the services the hank has
rendered fer the people Il has made
( farm loans of S3.00o,Oo0 to develop
agriculture, many of them TO farmers
with ample security who had been nn.
able TO get money from private banks
These loans were made with profit at
an interest rate from 2 per cent 10 s
per cent lower than that charged BIS
private bankers.
The farmers OF the state saved
100000 through lower Interest rates
~ the State Bank Indirectly they
saved much more because OF the sta.
bilizing effeot Of the State Banks rate
upon rates charged by other bankers
Did the farmers lose?
Instead of depositing the money
of the state in private banks, with lit.
tie or no interest return, the State
Bank has invested these funds SO that
the state gets fully per cent interest
and has complete control over its own
money. Did the State lose?
Like every other state, North Dako.
Ia has some rich communities aud
some poor ones The former have
more money than they need; the lat.
Ter always need more money than
they have in order TO develop their re-
! sources. The State Bank modified
+ an the public funds in the state ne.
Idepositing them IN local banks where
they were most needed for the pro
motion Of industry agriculture and
+ commerce. Did business, agriculture.
land industry lose?
Tho - per cent net earnings Of the
state Bank have been used 10 estab.
lish a substantial surplus and 20 de.
torease the state debt Did the tax.
payers lose2
+ This Is the record Of bank estab.
fbshed FOR service, not profit Il proves
that q public banking business can be
conducted with gains for the people
and for the state. 1t disprores The
theory that only private bankers have
brains enough TO handle credit
When the people win. who loses