The Devils Lake world. (Devils Lake, N.D.) 1920-1982, 1921-03-02
State Industries Had
No Evil Effects

State Industries Had
No Evil Effects
"These figures show the utter alb
surdity Of politicians charges that the
present state administration, the Bank
Of North Dakota and the state indus
tries are responsible for the credit
s~tringency. An analysis Of the condi-
ton Of banks makes it as clear as day
that allegations made against the adj
m%inistration are for the purpose Of
partisan politics only and have no
basis in fact
"As I have shown, the private state
banks are $50,000,O00 shy Of what
should be their usual resources. Now
the state has put into the state indus
tries only $1,O5O.0O0. OF that sum,
100000 has gone to labor, which
represents money that has stayed In
the state. The rest, $75O,OO0, has gone
into materials and represents invest
ment In the state mill and elevator at
Grand Forks. The state has something
to show for II.
ION a basis Of $4,000 investment,
the state actually car be held respon-
sible for only that part Of the deflation
In the resources Of all the banks. That
sum represents one and a half per cent
Of the total $50.OOO,OO0. In other
words, the private state banks them
selves have suffered 9s and q hall, per
cent Of the defiation; the state indus
tries are responsible for one one and a
half per cent"
Mr.. Thatcher's statement bears out
the declarations Of F. W. Cathro, di.
rector general of the Bank Of North
Dakota, before both senate and house
Investigating committees, that If the
private banks Of the state will pay
their obligations to the Bank Of North
Dakota, that institution would be In no
way embarrassed and could easily
meet the run on 1t engineered by po-
litical opponents after the passage Of
the initiated law, which gave political
subdivision treasurers the option Of
deposlting funds where they would.
Mr.. Thatcher's analysis also goes a
long way to explain the position Of
Mr.. Cathro, who had adopted the poll
Icy Of permitting funds to remain in
banks where; the various treasurers
had deposited them, because with.
drawal probably meant closing hun.
sdreds Of banks. He maintained that
policy, up to- the point Of being sent
to jail by the house auditing commit
tee, because. IN addition, he said, II
would be disastrous to confidence in
the banking system to have the actual
condition Of privately owned banks,
every one Of which was affected,
dragged out in the newspapers to
scare the people.
With full realization Of the oppor-
tunity It offered political. enemies to
make capital, the Industrial Commits.
sion sustained MI. Cathro also by or
dering the Bank Of North Dakota to
halt payment for the time being on
Withdrawals by various political sub
divisions where there. was no sound
evidence that they were made for any
purpose than that OF embarrass-
Ing the bank. 10 meet these with
ydrawals II would have been.necessary
Tor the Bank sof North Dakota call,
a turn, u the private banks, and
the truth q y So they could. not pay.
The Industrial Commission and Nj.
Cathro fought for q long time against
the STACKS d political enemies to
maintain their polfcy3and protect the
credit fabric as much % possible.
The so-called Investigation 81 the
house COMMITTEES, however. eaye anti
isidministrAtionn semi
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