The Bowbells tribune. [volume] (Bowbells, Ward Co., N.D.) 1899-1969, 1921-03-18
BANK Of n. D. FUNDS Gan
Be GARN|SHED COURT HOLDS
North Dakota Supreme Court Decides State
Bank is at Par With Private Institutions
in Sargent County Case,

2S Bismarck, N. d., March IT,.
Garnishment Of funds now on de-
posit in the private banks of the
state to the credit of the Bank OF
North Dakota was upheld today bV
the state supreme court in a deci-
sion in which Justice r. H. Grace
alone dissented. Justices A. NJ.
Christianson. L, B.. BirdzeH and J.
u. Robinson concurred in the opin>
ion written by Justice Harry A.
Bronson. s.. So -
The. meaning of the decision is
that the Bank of North Dakota is
Of d status separate and apart
from the state itself and that its
redeposits in the private banks can
be recovered by Sa county or other
political subdivision.
> The effect of the decision Is that
the private banks Of the state
which, according to the senate au-
dit Investigation committee, could
not meet the ordinary demands
made on them by the state bank,
are in more difficult position than.
ever as the result of their own ac~.
ttion. 81; 81 .:: !:
- II the conspiracy of the big, bank.
ers OF the state and the anti-admin-
istration politicians to tie up the
funds OF the Bank of North Dakota
continues, it.. will be necessary for
the state bank to call in its rede-
posts in the local banks, is the
opinion prevalent In official circles
here.
Forcing collections at this. time
Is held to mean the suspension of a
large maj ajority OF the 434 banks OF
the state. which up to the midd le. OF
February had refused to meet the
demands made $on them by the
Bank OF North DAKOTA, for the rea-
son that their own assets were
3"frozent' in loans uncollectable. be-
cause OF the demoralized grain and
livestock markets. (.
Private Hanks In for 1t s,;::s..:is
s@ Director General f.. w. .Cathros of
the Bank of North Dakota would
not comment on the decision. with
out first comforting with the indus
trial commission, other than to say:
.'The decision does not improve
the situation which the private
banks Of the state are facing. Z
Governor Lynn J.. Frazier and
Attorney General Lemke are; not In
Bismarck while John N. Hagan, the
third member OF the industrial COM
mission, Is Ill at his home here and
would not discuss the courts find
ings.
In. the course of the senate-audit
investigation it was
charged that the garnishment pro
ceedings brought against the Bank
OF North Dakota thru Its. depositar-
les was simply q part, of a conspirS
acy of the private banks to cover
up their own weakness and inabili-
ty to ssthaw,, out the public funds
which they have frozen. =
This contention was backed up
by the action OF Burke county
banks. Previous to the garnish-
ment proceedings begun by thai
the banks all plead fol
mercy when the Bank of North Da-.
kota tried to withdraw about s. 900
Of redeposits from each bank In or
der to meet demands being made on
It. .ss: Is .:.,,.,.8 -
Then the Tune Changed
81 Immediately, however, that the
garnishment was slapped on the
funds in the banks the tune changed
and the word came back to the
Bank Of North Dakota in crisp tel
egrams :ss5 VT f.xss
mpossible to meet drafts. Funds
garnisheds by Burke county.
E Letters and telegrams we're read
Ia the records Showing that 434
state and national banks of North
DakotA had efused to pay their obs
TO the Bank Of North Da-
kota. IN view OF this situation #
was held obvious that the Ts sWall
banks Jumped at the chance offezed
them BY thes 90 olttic cians to cover UP /
their deflciencie
This SITUATE ion IS held official
opinion TO- be, still prevails that |
the 400 odd state and III ma ttonai
banks can not meet their obiigaSs
tions. to the Bank Of North Dakota.
gsgT sS The mere fact that the garnish-l
ment az publ funds redepost stted Sbysl
The Bank OF M North Dakota stands,
spells actio Neither the Bank Oi
North Dakota nor the counties and
snbtl liyisiD iDns which have entered
into B the conspiracy to embarrasss
khA state will stand ssstil
The garnish hMent "a cans that the
sub divisions In the eopsptr have
sjerves motto Oh hs Bank Of Worth
pakotasthat the pub He fundsSd pos
Rall are fWante ed +.
Bank o.; Norths Oak as |
thea result the posi- tion IA which
Il has been put, q mt procaed 81
pay oh theS Ssub Ion deposit tprs;
ind, ,stoS do this q .ist draw on sits
resources.
',ssSs' ssonrces in Private Hank ii
Sssss acffcallys an esonrcessareI
InS Mo form redep0sit and bills
recslvable III the stat and naf fs0nAl
n fhfnouts Mort
nsQnlSy kospay
EaItiiet spms from
SsssS g u ,akpts islI i.EI