The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1920-12-04
GET-T0GETHER
ACTION GIVEN
HARD SETBACK
Fargo Propagandists Unable to
Keen Politics Out of Bank
Situation
DRAFT SUITS MAY COME
I'reasurers Hold Is. of n. D.
Has No Right TO Refuse
Payments; Banks View

The spirit of cooperation which aE
peared in Tie banking situation in tn:
state following the adoption of resolu
tiols by the evccutiva council of the
state bankers association piedging co.
, operation with state authorities and
! urging local ,reasurers to leave funds
in the, Bank Of North Dakota in tn.
present emergency, was Gudely shock
| ed today.
Although 1t was stated at the Bank
OF North Dakota that there had been
few drafts presented by treasurers
indicating |. spirit of cooperation on
their part, though the initiated law
| has been effective but two days, the
Fargo organ of the Nonpartisa II
league flamed out that foes open
raid on state bank
There was further evidence that al
though the initiated law regarding
public deposits is now accepted gen
orally as reality and that it will
i rol De changed by the Legislature,
that efforts of Nonpartisan league
heads, chiefly outside Of Bismarck,
to make political capital out of the
situation will be continued.
The Bank of North Dakota stands
in the peculiar position today .of be-
ing the first institution or branch of
the state government to refuse to pay
its debt, is the way some persons
view the resolution adopted by the in
dlstrial commission authorizing the
managers Of the bank to refuse to
, honor drafts.
On the other hand, F. w. CathrO,
director-general of the bank, declared
that the bank would make no with
drawals from banks other than nec-
! essary and that only treasurers who
sought to complicate the situation by
Withdrawals, would be curbed.
~ Those Refused
Drafts from Logan and Morton
counties and the city of Lisbon for
the withdrawal Of funds In the bank
were refused. According to state
ments made in behalf OF these treas
urers they merely we're drawing from
the bank the amount OF money drawn
, by the bank of these counties.
1t is probable that legal action will,
be taken to force the Bank of North
Dakota to honor drafts made upon
it by counties. They take the posi-
ton, it is said, that they were only
acting in the best interests of their
community in making the wiAldraw"
ais they sought to make.
National Bank Left Out
Another rift in the situation was
the lack of an invitation to national
bank representatives to participate in
the bankers conference called for
next Tuesday to discuss the situation.
MR. Lofthus, state examiner, said that
he had not invited them to be pres
ent because he has no jurisdiction
over national banks.
1t was reported mere today that,
with many banks present from rural
communities, an effort would be
made to force through resolution
asking for "a repeal, of the initiated
law. ANY such action would be an
other blow at efforts to obtain CO.
operation between citizens generally
and state officials at the present
time, it is held.
The number of bank cosngs was
brought to 20 today, with the clos
ing of the Mohall Security state bank.
The Citizens state bank, of Antler,
was the nineteenth bank to close.