The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1920-11-19
INITIATED Jaw
KEEPSCASHIN
NORTH DAKOTA
Changing of Distribution of
Public Funds Not Held
Matter of Serious Concern
COMMON SENSE IS URGED
Bankers Say Gradual Withdraw
al Won't Hurt if Deposits
Equally Distributed

mold special meeting OF the Mandan
Commercial club rooms on Tuesday,
Nov. 23, at 2 p. M, it was announced
today. An invitation to all bankers
and treasurers of public funds in the
state of North Dakota to~be present
is expected a., ~. ".. ."
The purpose of the meeting is -
discuss measures to provide transfers
of funds in accordance with the i'll
itiated law dealing with public funds.
: the idea being to provide means for
such transfers without causing un-
necessary hardships on any ban1ing
institution in the state" says the an
nouncement of VIM. j. Rick, secretary
of the association. &E> ..
"The initiated law permitting the
withdrawal of county, school and
other public funds, except state funds,
from the Bank of North Dakota will
not materially affect conditions
in : the state if common sense
is used in making the transi-
tion," said local banker to-
day,y dis scussing the situation.
The money will remain in the
state. If the local treasurers with
draw their funds from the Bank Of
North Dakota, and the bank with
draws the money from other banks,
the money still will be here. but the
distribution will be somewhat chang
ed"
The initiated law will be effective
on Dec 2, if the state canvassing
board completes the canvass of the
vote by that time, which it is ex-
pected it will do. The withdrawal of
funds probably will amount to little
for months, according to the tenor
Of opinions of the local treasurers.
The treasurers of funds in Burleign
county do not expect to withdraw
what funds they have on deposit in
the Bank of North Dakota, except
gradually 80 ~
No Step Taken 'r... .
Thus far no organized step has been
taken by the Bank of North Dakota
o. any other Organization to accom-
plish this action gradually. The only
action taken by the bank is the send
ing of a letter to banks having re-
deposits to be ready to honor checks
after Dec. 2.
There has been no disposition on
the part of any local treasurers to
embarass the Bank Of North Dakota
by heavy Withdrawals Immediately
after December 2,according to those
who have talked with any OF them. A
number do not expect to distlrb their
balance in the Bank of North Dakota
oil h,,4 +n IL tho hi11c nE
the county, city or school district re-
quire, and then deposit new collec-
tions in home banks.
Deposits at Low Ebb
The public deposits in the Bank
of North Dakota )are now said to be al
their lowest ebb. Perhaps no more
opportune time for the law becoming
effective could be found. The public
deposits are estimated at $10,OOo.OOO.
They have been as high as $40 100000.
The total deposits in state banks
alone in North Dakota is $261 100000.
1t is pointed out, therefore, that the
withdrawal of $10,0O0000 should
cause embarrassment only in isolated
cases, where the banks had loaned
money for lengthy periods or the
banks have far more than fair al
lotment from the public funds from
the Bank of North Dakota.
Facts to Come Out
}'If the Bank of North Dakota has
made .sslnwisE deposits sof! public
moneys; If it has favored banks with
deposits that they are not entitled to,
that fact will come to light when the
re-transfer of the funds take place.,
said a Fargo banker.
responsibility for the situation is
entirely up to the Bank of North Da-
kota We should never have had the |
bank in the first place, and if the ad-
ministration had been willing to hear
us two years ago, when this matter
was taken up by the legislature, the
state would not have been obliged to
face the situation that now exists,
continued the banker. ,..
According to information in Far
go, the Bank of North Dakota
has on deposit at this time ap-
proximately 100000. About s5,50O.-
900 of this money belongs in the Red
river valley district. and the Bank
of North Dakota has re-deposited in
this district about s4,0O0,0OO. About
SO 10000 was obtained by the Bank
of North Dakota from the Second con-
eressional district counties and the
re-deposits in that district are about
So 500, 90. YThe Third congressional
district has public funds OF about
So, 900 900. while the re-deposits from
the Bank of North Dakota are about
Sc. 900 900, which eventually will come
back to this territory. The bankers
in the territory, however, are advls-
ing the county and city officials
charged with the deposit of public
funds to make no hasty withdraWals
from the Bank Of North Dakota be-
cause the banks in this region are. as
a rule, in good condition.
Situation at Beach
A dispatch received from Beach,
n, D., deals with the situation
in Golden Valley county as follows:
1T is now up to the Bank of North
Dakota to say whether Golden Valley
county Withdrawals in bulk its de-
post of public money.
County commissioners of Golden
Valley had about decided that while
CONTINUED on Page SIX