The Bottineau courant. (Bottineau, Bottineau County, N.D.) 1895-1929, 1920-07-08
new STATE BANK
FUNCTIONS WELL
Manager Cathro Discusses
Eastern Balances, Redeposits
in N. D. Banks.

The remarkable success of the Bank
Of North Dakota is a constant source
Of embarrassment to the opponents Of
the Industrial Program of the Nom
partisan administration of North Da-
kota. To counterfeit the influence of
the achievements of the state bank
the newspapers which represent the
Vested Interests persistently lie about
the affairs Of the bank and endeavOr
to prejudice the voters of North Da-
kota against it. The Bismarck Tri-
bune recently published a vicious arti-
Gle summing up all the lies which
came to the mind Of the writer. The
paper refused to publish Manager
Cathro's reply unless he would pay
for it at advertising rates.
Part Of Mr.. Cathro's reply follows
"What are the facts as to bank bal
ances in the Twin Cities? They are
these: On June 16, 1919, prior to the
organization of the Bank of North
Dakota, the banks in North Dakota,
as a part of their reserves, had on de-
post in banks in Minnesota S11,526,.
Oto.Oc, Ill UdAhS Ill ollCI SlttjCS PAs
502, 159.26, in other correspondent
banks in North Dakota 81, TAB, 541.O o.
being a grand total of reserves of
state banks held in other banks in the
amount of 500, TIP, .93. The Bank
of North Dakota has on deposit at the
present time Gas of date of May "A,
1920, in Twin City banks 1881 ,923.13,
$4O5, O2O.26, S244,429.12 and SOL. 751.O0,
respectively in each of four different
banks: in Duluth $197, S52.7 70; in Chi
cage S3345, S39.61; and in New York
$179, 9S9. 633-making a grand total of
reserves held by the Bank of North
Dakota outside the state of North
Dakota in the amount of 81, 766, S05.45.
Eastern Accounts Necessary.
8 Every banker, every economist anC
every student of financial affairs well
knows that we must carry eastern ac-
counts sufficient to furnish the neces.
sary exchange for the transaction of
business, not only for the purpose of
paying checks held outside the state,
but also to provide our customers with
drafts or exchange to meet their re-
Quirements. The daily float for the
current year has averaged about 49,.
100000 a day, and it has sometimes
u we $50 O 600 a day. During the
week ending May %, there passed
through the bank 36,OO6 items, aggre.
eating $9,S36,ss7.37, which volume of
business certainly requires large east
ern exchanges to handle. During the
past six weeks $7,441,511.5S have been
paid out in the payment of warrants,
These exchanges must be paid for it
drafts that are payable at par at the
Federal Reserve bank; consequently
sufficient funds must be maintained
abroad to meet the payment Of oul
float.
In the event that the Bank of NORTH
Dakota should establish correspondent
relations with the Federal Reserve
bank of Minneapolis, then it would b<
required to keep or deposit in the
Federal Reserve bank of Minneapolis
without interest, seven per cent Of til
demand deposits and time deposits
maturing within thirty days, ani
three per cent Of it's time deposits
maturing after thirty days, which
would be an amount at the, ,presen'
time of 81 1851, 528.91. In addition tt
that, it would have to, carry an amount
equal to it's items out for collection
which would amount to $1,O69, O73.63
which would make a total reserve tt
be carried at the Federal Reserve
bank, based on its present footings, o.
$2,S3O,602.54, all Of which would have
to be carried there without interest
We would also have to carry a suffi
Gent reserve to protect, the with
drawals that are constantly bein,
made by the various ~treasurers, and |
possible reduction In the accounts
that the banks are carrying with lis
all Of which would be SO carried b.
/ us in the Federal Reserve bank Is re
serves, without interest
We are not now CARRYING fund