The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-04-05

and also in the act authorizing the
home building series Chapter "a,
Laws Special Session 1919, Section g..
Section Z of the Bank Act provides
for the deposit of all the state funds
in the Bank of North Dakota. Mote
however, the exception of the sinking
fund OF real estate series (Chapter
154,, Laws 1919, Section y. This, of
course, would include the proceeds OF
the sale of bonds. These proceeds
are, in the case Of the bank bonds
designated as the capital of the Banl.
Of North Dakota Section 4, Chapter
148), and, in the case of the mill and
elevator series, the proceeds are re-
auired to be placed by the Industrial
Commission in the funds of the asso-
ciation.' Section Z, Chapter 1881
Again referring to Section Is of the
Bank Act, it provides that the Bank
may transfer funds to other depart
ments, institutions, utilities, indus
tries. enterprises or business projects
of the state which shall be returned
with interest to the bank. Now re-
ferring to Section ITS of the consti-
tuition which reads: .
NO tax shall be levied except in
pursuance Of law, and every law
imposing a tax shall state dis
tinctly the object of the same, to
which only it shall be applied
it is pertinent to inquire, what rela-
ton the bank or the state sustains
with reference to the various deposits
Of public funds required to be deposit
ed therein.
Would Lose Character.
'If the bank is but the state holi-
ing these funds as mere custodian,
as a treasurer would hold them, they
would not lose their character as pub =.
lie funds: and if the bank, in all its
business relations, is but the state,
whenever it would follow the express
direction contained in the law to
transfer, invest or Loan its funds, it.
would do so in, the direct pursuit of a
governmental object Manifestly, if
this governmental object should differ
from that for which the funds were
originally raised by taxation, the man
date of Section 175 of the constitution,
requiring tax monies to be applied to
thejpurpose for which they were rails
ed, would clearly be violated. Can it
be seriously Scontended that monies
raised by taxation for the support OF
the public schools in remote sectioi,
of the state are authorized to be used
for the purpose Of building home
for a bank cashier in the Capital City
of the state? This is the logical re-
suit Of the petitioners argument The
steps are these: The bank is the state
because the constitution authorizes
the state to engage in the banking bus
ness. The things that are done by the
bank are therefore done by the state
in pursuit of whatever governmental
object the bank is authorized to at
tain. To attain these objects, public
monies are required to be deposited
in the bank, there to be used through
loan or transfer to finance any of the
authorized operations. The flaw in the
argument as we see it, is this: 1t not
only ignores the effct of express con-
stitutional limitations upon the pow
ers of the state government itself, but
it ignores as we'll the legal effect of
what the legislature actually did when
it authorized the use of the credit of
the state for the purpose of supplying
capital funds to be used to form a
separate organization through which
it might seek to accomplish certain
governmental ends In attaining these
ends, if the state should act directly,
it would be hampered by reason of
express constitutional limitations. But
it can hazard whatever money, law
fully obtained, it may be authorized
Continued on fsS> =