The weekly times-record. (Valley City, N.D.) 1912-1922, 1921-03-03
WHY THE WRONG IMPRESSION

Certain league papers, notably the
Courier-News, have had considerable
to say of late regarding ''bank wreck
ers," leaving the impression that this
class is composed of what are known
as I, V. A. politicians. In this i'm
preston correct? ,
The financial situation throughout
the world is acute at this time, per-
haps more noticeable in North Da-
kota as result of the drop in prices
of all farm product, and this has in
evitably affected the condition of the
private banks of the state. However:
the Bank of North Dakota, handling
public funds as department OF the
administration and presumably not
interested in private loans: should not
be affected by this condition. always
provided that the public funds had
been handled under good banking
principles, impartially distributed to
banks of known: sound financial
standing. Through testimony given
before the investigating committees
of the legislature we find that the Bank
of North Dakota has not been admin
istered in this way but rather has
been used to finance league political
activities, league subsidiary compan-
les and to bolster up the failing finan-
cial condition of so-called friendly
banks" This action on the part of
bank officials is the sole cause of the
condition in which the Bank of North
Dakota now finds itself. AS this bank
is run by men appointed by the league
administration tits difficult to see how
the I. V. A. political faction can be
connected with their failure. While
we grant the contention that the law
initiated by the I. V. A., permitting
the withdrawal of public funds from
the Bank of North Dakota: has SER
iously crippled this institution, we
cannot admit that this law could have
been detrimental to bank admins
tered under proper banking principles
The fault lies in permitting the bank
to be used as political football.
In reading the testimony before the
Legislative Investigating committee we
find that the Scandinavian American
Bank of Fargo was re-opened by the
supreme court, acting on report adj
mittedly misleading as to it's financial
standing. Circumstances lead one to
believe that the misleading status Of
this report was known to the legal ad-
visor Of the Bank of North Dakota
VIM. Lemke, who was also legal ad-
visor to the Scandinavian American
Bank at that time. Under these con-
ditions we find that the Bank of North
Dakota has re-deposited about $44O.-
900 of public funds in the re-opened
bank Testimony shows that a large
part of this public money was used tc
finance subsidiary companies of the
nonpartisan league, considerable Of
this doubtful paper finding it's way
into the Bank of North Dakota as re-
biscuits. The Scandinavian American
Bank has closed it's doors, being in
solvent. Some 100000 of public
moneys being involved in it's closing
and necessarily lost to public use for
some time. Does this reflect on the
independents
We find that about S25 900 was re-
deposited in bank at Beach a few
DAYS before it closed. the Bank on
North Dakota officials knowing that
it was insolvent. in an ATTEMPT to help
it through its difficulties. Is this the
the proper way to use public moneys !?
We find that an automobile dealer
furnishing automobiles to the leaene
furnished these cars on notes which
he knew were to eventually find their
way to the Bank Of North Dakota as