The Prince George's enquirer and southern Maryland advertiser., 1921-02-25
N, DAKOTA BANKS
FACING A CRISIS
State Institution, Cornerstone OF
200 Non-Partisans, De-
faults on Checks.
LIQUIDATION is EXPECTED
Legislative Investigation Reveals FL
nanciaI IrreguIarites-Tow Townley
Loses Control and Lemke
Usurps Power.

Bismarck, n. D.-North Dakota is
| face to face with a financial and po-
! litical crisis. The time has come
when it must pay the price for it's
experience with Townleyisn1, and as
each day goes by the staggering pro-
portions of that price become more
| and more apparent. That is the opin-
ion of the unbiased and many biased
observers.
In the political and financial war
fare now being waged here two fea-
lures of import loom up for the fmme-
diate future. On the one hand, there
of the state government to permit the
wrecking of from $50 to 200 banks.
On the other, there is the possibility
of statewide recall election in this
state of bitter political struggles. De-
mands for the recall of the governor,
attorney general, commission of agri-
culture and two justices of the Su-
preme Court have been voiced already.
The Bank of No IN Dakota, the key
stone of the public ownership strUc-
ture erected by the Non-Partisan
League controlled government, is ad-
mittedly insolvent. 1t cannot meet it's
obligations.
Liquidation of the State Bank is de-
manded by fnanciers as the first step
in the rehabilitation of North Dakota's
finances. Strange as it may seem, Ar
thur G. Townley, big boss of the Non
Partisan League, is in favor of such
liquidation. But there has arisen an
other boss of the NOn-Partisan League,
William c. Lemke. attorney general
of the state. Lemke. who is known
as the 'bishop," refuses to sanction
liquidation.
Lemkeism is taking the place of
Townleyism. But there is no real diff
ference so far as the people of North
Dakota are concerned. This division
in the ranks of the leaders of the
Non-Partisan League has received
more than its share Of attention. In
the final analysis, conditions of far
greater seriousness than differences Of
opinion among the leaders are respon-
sible for the present crisis.
Arthur Townley found himself
week ago able to control only ten
votes in the secret caucus attended
by 20 Non-Partisan senators and rep
resentatives and was voted down in
a body where he once held full sway
William C. Lemke seized the reins of
control. But it should be remembered
that both Townley and Lemke must
continue in control together or must
fall together.
The bankers CT North Dakota,
through q committee, made q proposal
to the leagIe some time ago which in
cluded the abandonment OF the Bank
of North Dakota. There has been a
legislative investigation going on into
the affairs of the bank and the public
is beginning to find out the true state
of the finances of North Dakota. The
conditions are shocking even to ardent
Non-PartiSan League followers.
The real state of affairs was revealed
last week when the Bank OF North Da-
kota refused to honor any State checks
except those drawn by the penal and
charitable institution. 1t is refusing to
honor checks of the subdivisions Of the
state government, such aH counties and
school districts, which have funds de-
posted in the state hank.
Moreover, the officials the bank
gave it out coldly that all banks having
redeposits must return those deposits
at once 1t was stated that if this
der meant the closing of $50 to 200
banks that could not be helped
Already counties having funds on te-
post with the Bank of North dakota
are taking means l. protect their
money. Golden Valley and Sarge
counties :+arted garnshmel proceed
ings, tying up funds redepOsited in GER
tain banks. Grand and Morton coun-
ties will take the same means to Pro-
tect their funds.