Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-04

you can qualify It in any way
wish. Does any actual money pass
except by of a debit ano
lcredit entry upon the books of the
bank and perhaps the books OF the.
[contmission II ,>they have any! =.
Every check that passes from one
man to another. transfers FUNDS;
wicket and draws the cash or whether
the deposits 1t.
1asQ. We are entirely in accord on
that. but what I want to have you
admit, il you will. that by this device
of drawing the check no actual I
side money was brought into the
bank. outside of the funds that were
already there and deposited by &c
poeitors? A. No. there was no add
tional money brought in.
h @. Now. isn't 1t a fact that the
capital consisted entirely, az a. basis
for it, of the 81, o00, 900 bonds. bank
series, issued by the state. A. No.
Q. Hadn't you acquired those bond
yet at that time? A. Yes.
Q. Where were they. A. The
were in possession: the possession
of the bank.
@. Did they appear among the as
sets or liabilities of the ban my
where at hat time. A. At what time
do o refer to.
@. Well, we are speaking now as
of the time when you first acquired a
capital?' A. They had appeared on
the assets of the bank In the mean
time.
Q. That is between the time you
opened up and the time you acquired
capital? A. The time that we bought
the bonds. they appeared amons our
assets.
Q.1Your statement-the first zone
which I have here-shows purpor1 to
carry q statement at the close OF
business on September -. in bulletin
No. 2. seriesaof 1919. read that
correctly. dol not? A. Yes.
Q. It shows upon its face a capital
Of $~2.00o.000. does it not. A. Yes.
@. Now, will you state to US OF
what that capital consisted? A. 1t
consisted Of naoney delivered to the
Bank of North Dakota by the Indus
trial Commission.
just q Check.
Q. Actual money? A. Represented
by q check.
@. But the bonds were, az q matter
LOT fact, the basis Of the capital at all
transactions. You can't confuse then,
You must not combine them. They
were two separate transactions.
@. Give Them to us. A. In the
first place. the Bank of North Dako-
ia bought the bonds the same as if
they bought a bill receivable. a [. S.
treasury certificate OF indebtedness,
Liberty bonds, or the like.
a. What WITH A. With the same
kind OF. money Wi buy a ~rediscount, a
rm loan, q u. s. treasury certificate
jOf Indebtedness, a school warrant or
any-e of the bank: the same kind
Of sm6ney.
q. What kind of money is that?
A. The same money that all banks
loan.
Q. What money is it: A. Money
lated there through all the deposits OF
TIA combined depositors.
:. @. Proceed with the explanation?
A. After that transaction was COM
pleted. and the bonds bought and paid
for from the Industrial Commission,
, based on the assets of the bank. then
|, subsequent to that time the industrial
lCommission delivered to US the check
on the Bank Of North Dakota, in eff
feet saying here is your capital, credi,
this up to a capital ccourt.
g. Delivered the bonds? A. Nc.
: Q. Delivered your checks? A.. Yes
!. @. Drawn on what? A. The Banl
of North Dakota.
@. When did the bonds enter thu
= Bank or North Dakota as the prop
! erty of the bank? A. At the time tn
bank issues its check to the Indus
trial Commission and received tn,
resolution of the Industrial Commits
I sion that they received our offer t
buy the bonds at par:n ga.
Il. Q. Can you give uSSany< idea ,zs i
when that was? t&tA.' Well. it wa
somewhere about the first or secon,
\ of August. some early day in Angus,
1919.
Q. You will pardon If I ppear l.
n be confused, because I think you
recollection will bear me out that tn
!, law under which the bank was or
. ganized. as I recollect it, provide
9 that the minute the bonds are deliv
!: cred. they become the capital an
+ are known as the capital of the banl
You are aware Of that fact. are yo
: not? A. AS I recall it now. I haven
Hooked for sonse time. l think ther
! is some provision made for2deliverin
X 49,