davidaulloa/AmericanStories huggingface dataset:
Cavalier County farmers press. (Langdon, N.D.) 1920-1921, 1921-02-24
Only Criticism Made Dodges Facts

"The basis OF our entire industrial and economic structure is credit. The
success of all business enterprises is dependent to a large degree upon the
extension. The national reserve system was established for the purpose Of
enlarging. regulating and stab1izng credit relations"
Mr. Bishop might have added that the foregoing also was the purpose in
establishing the Bank of North Dakota.
The Bank of North Dakota operates" he continues, "under a plan
peculiarly analogous o the functions of a reserved bank.
at is self evident that to properly perform these functions bank must
provide for a reasonable and sufficient Hqumty O., its assets at all times.
you are aware of the prevalent condition of contraction. This is general
and serious. In some ways. 1T is particularly acute'n your state. At such q
time and in sucha condition the bank as organized should be in d position to
extend considerable relief through the customary channels of credit extension
in the press of the state hostile to the present administration, chooses to
ssun Mr.. Bishop based his next statement upon being misinformed, rather
than o n the fact that he was employed by politicians opposed o the very
idea of state ownership and a state bank. But the Industrial commission
The commission points out q very obvious fact. The COMMISSION had no
conurolo over the conditions which he report crticizes; namely the withdrawal
of state funds il private banks where they had beer redermNted.
~ A law initiated by forces hostile to the administration and the farmer
labor program made it mandatory for the Bank Of North Dakota alto withdraw
these funds from private banks, because local public officials had taken
advantage of the letter rather than the spirit of the law to provoke an
The law left the decision of the officials OF public subdivisions to them
as to whether they would carry public funds in the states bank. Heretofore
they were compelled % carry them there. Whatever may have been the issue
as the people saw it., the law and it's passage a engineered for the purpose
relative size in the world has probably ever been subjected o such Il
avalanche of Withdrawals Immediately the initiated ct became effective
Yet the bank stood UP safely, thanks to the action Oft the Industrial commission
which issued a order that withdrawals should be limited to the normal
Dakota alone that the order was designed to protect; but private banks
throughout the estate, which, tottering q they were would have gone dow
under cash demands from the Bank Of NouhL Dakota.
The audit report was written by a man mlSnforIned on the subject.
AT any rate, the commentary, of which the press fighting the presents admins
tation has made much Of says:
at is therefore significant that, as appears herein, on November q, 1920
redeposits of public funds in local banks to the amount Of s1y39oOo0. IT is
APPARENT THAT THIS COULD ONLY EFFECT AN INCREASED STRIN-
GENCY AND DECREASE THE ABILITY OF LOCAL BANKS TO ASSIST
THE Local, MERCHANT AND FARMER AT THE TIME OF THEIR
A +
Cavalier County farmers press. (Langdon, N.D.) 1920-1921, 1921-02-24
Hostile Banks Get Aid From Bank of N. D.

u The a Bank Of North tn Dakota w ,s,e created atmn as a !, peoples oosns bank bank and is being fg
the situation aa Just discussed hs In pursuing gchgg this policy of attempting tenn sht to preserve preserve"
tions' tn the Bank If North rh Dakota has in many cases assisted financial Md insttue
NorthD Dakota, and irrespective Of what the Culture attitude O. UGH financial
institutions may, be, tn management OF the Bank of North Dakota las
announced that it intends to continue to operate in the manner best fitted to
serve the interests of all the people Of the state
The foregoing report WaS offered to legislators. whose efforts to destroy
confidence in the Bank Of North Dakota were later to come out .intoth the open.
Despite charges to the contrary, unbiased inspection oft the loans and
discount n redepoit records of the institution will reveal that those COM
munites Which are VIGOROUSLY hostile to the organized farmers N labor
who elected the present administration hay received heir full share Of public
funds az we'll a those which have supported the present administration.
We're sincere efforts on the part of the press and the politicians opposed
% the administrator made to set the actual facts before the public, the
fairness with which each community has been treated according to its needs
and the resources Of the Bank of North Dakota would lie n clear rs day.
Instead of that, the socaTed investigation has become the stamping
ground for politicians. What va purpored to be Il fair inquiry into the
business and condition of the Bank of North Dakota has failed to revea any
msoundness of policy or practise; but it has permitted The politicians every
opportunity to miIead. disuT, over emphaiZe and miSrIreSent not only
the Bank Of North Dakota. but members Of the Industrial commission. Wild,
unsusained charges have been made With M and n only object in view.
That object is the headlines in the press politically hostile to the rgamzed
farmer and labor government.
On December 3Et, the Bank of North Dakotas balance sheet showed a
net profit for the eighteen months Of its operation Of $13599S50. But it is
another and more significant point that Mr. Paddock Kin his report calls to
III particular attention If the legislature.
Cavalier County farmers press. (Langdon, N.D.) 1920-1921, 1921-02-24

E~5EEH
Three motives prompted the Industrial Commission of the state Of North
Dakota to use this newspaper space in behalf of the peoples commo interest
They are:
FTst-To impress upon the people facts about the political
conspiracy which is the open manifestation of underground attacks
made upon Ahe Bank Of North Dakota in the hope Of destroying it.
Secondy-To report % the people directly upon the audits made
of the Bank of North Dakota, rather than ave the report dissent
mated through biased partisan channels.
Thirdly-TO reveal to them how the Bank of NOrthD Dakota has
operated to uphold the credit structure of the state at a time when
the wheat belt is suffering from q most serious financial sringency
due to various causes.
The declaration of financial independence represented int the authorization
" the voters an the establishment of he Bank of North Dakota set to work
yer wheel of the political n economic system opposed Ito the people
ntGing business for their common interest. Certain privileges were threat
rned which m had com to consider in the light that kings used to consider
the heritage of thrones-thers by divine right.
Thus thel large situation into which the people injected the Bank of North
Dakota becomes apparent The bank was predestned to be the subject OF
battle from tn time 1t vas organized.
No lessa astounding than the very idea itself to the banking interests was
the success Of the institution from the start. No less astounding was the
soundness of the principles upon which the bank was founded, and the policy
under which it a agreed to operate IT.
Mr.. E. J Bishop, Of Bishop, Brissman Co, of st. Paul, thu auditing cor
pany employed by a group of state oficehodes hostile to the Nonparisan
league, % make an audit of the states bank, himself acknowledged. in fact
expressed his admiration for thu sound principles upon which the bank was
operated. He compares it in scope and purpose and policy with the basic idea
and aihczes the institution, probably through misrepresentation Of the facts
objection.
used in the investigation by q committee loft the house of representatives. says:
Cavalier County farmers press. (Langdon, N.D.) 1920-1921, 1921-02-24

my difference Of opinion N that score; no attempt to block an impartial
Investigation.
Yet the house auditing committee investigation is a show place to provide
u basis for newspaper attacks OF the Bank Of North Dakota for purpose
nmly-to destroy the peoples confidence in the bank and make political
capital.
Every courtesy has been offered the auditors hired by the politicians
hostile to the Bank O. North Dakota; every courtesy and opportunity has been
offered 20 the house auditing committee or its employees to find out whatever
it is that they have wanted to know. The commission has objected, however,
to a mock investigation staged merely for the purpose of creating newspaper
propaganda; of distWting details and releasing false impressions by deliberate
Misrepresentation.
Two complete audits of the affairs of the Bank of North Dakota have
been made. One WI that of Bishop Brissman & Co.; the other wa by the
Industrial commission. Both auditsa are in substantial agreement. Nothing
wrong vas found with the states bank in either. That fact has stood out like
a sore thumb in all the attacks n the institution made before the house
auditing committee.
H. A. Paddock, secretary Of the Industrial commission, in his report o
the Bank of North Dakota submitted to the house, senate and secretary Of
state, reveals the error Of fact in the commentaries Of the Bishop, Brssman
companys report. He says:
"n the face Of falling prices and heavy Withdrawals of funds by insutu-
tons outside the state, the Bank of North Dakota has used it's sourc in a n
effort to prevent disaster from falling upon the financial institutions within
the state. This is ia marked contrast to the action of the Federal Reserve
bank Of this district, which forced vast amounts of liquidation within the
state IF North Dakota at a time when it vas extending further credit to
other sections of the m district The reserve bank also refused TIC extend
time that it vas extending credits in such manner that the milling interests
afer 1t got INTO their hands"
Cavalier County farmers press. (Langdon, N.D.) 1920-1921, 1921-02-24
Bankers Ordered to Pay Obligations

After this action of the house investigating committee in order to safe
guard itself so ar as possible, the bank had only II course of action left
open. The Industrial commission issued n order TO register or deferred
payment, if necessary, checks from political subdivisions and the state
penal, charitable and educational institutions. Political subdivisions main
tanning their deposits in the state bank we're exempted. This action "a
needed to protect the Bank of North Dakota against further designed with
drawals At the same time, the policy of eniency toward the private banking
system was necessarily abandoned, because the house audit committee hG
destroyed re fruits of that policy.
The responsibility rests upon the political consprators.
Collectors were ordered sent ut to every bank in the state to demand
Dakota. The statement of position of the Industrial commission said:
MANY private banks AVE failed, neglected and refused % pa funds due
to the Bank of North Dakota when called upon. swing as their reason poor
crp conditions and failure of the people to meet their obligations.
"The Bank of North Dakota has endeavored To be as lenent as possible
with such private banking institutions in forcing payment Of such obligations
private banking institutions have chaf@rd that The Bank of NORTH
Dakota vas mbarrasse and in financial shn2Hnces. when as Il natter OF
private banking system to meet its obligations. Tue 10 such private ben es
and such private banking system having extended nor loans han they
should have; having failed to KEEP a sufficient anomnt of reserve and leng
unable to meet checks upon demand deposits made With Them.
"The press If the state is trying to conceal the fct that the financial
sringency is due to the failure of private banks and bankers IL meet their
obligations. Now in order that the Bank of North Dakota may be enabled
to collect a portion of those funds which ared due it,. the management of the
bank is hereby directed to send ot collectors % force payment of obligations
due it,, and in case payment is not made, to report the matter to the state
examiner" a@
Farmers, labor and business men Of the whole state: The Industrial
ommissons desire is simply to set the facts OF this political conspiracy before
you. With thu facts, the people will know Wheret to place the responsibility
These attempts to bring down the whole credit structure Of North Dakota on q
Judgment. They represent more than al infamous stab at the reputation Of
North Dakota among thu sister states ci the Union. They represent positive
humanity because the welfare Of every Individual In the atate-of every
TAI woman or chnd-s involved.
OE MODTu nAKnTA
Cavalier County farmers press. (Langdon, N.D.) 1920-1921, 1921-02-24
Bankers Pay Penalty of Own Blindness

The report of the audit company has been advertised by misconstruction
and Deliberate malice a a criticism of the administration of the Bank Of
North Dakota. Yet private bankers, blinded for the moment by partisan
passion, helped initiate tina law which vas SO serious a blow at the credit
fabric of the state at the very time when every resouce should have been
concentrated to help keep the credit machine working. The bank had n 0
alternative but to obey the law. 1t "a not the banks wish, nOr IA it the
banks policy to withdraw funds ron localities where they would help keep
banks open, irrespective of the political new of their officers; where they
would help keep the merchant in business the mills running and the fHlme
going o n the farm.
Members OF the commission feel assured that had business men f,re&etn
they were voting q group OF politicians the right to wreck the sahH bank
the Law never would have carried. What might have been, however. is
aside from the question. The fact remains that the political con>lirators.
hNndly, unseeingy, as it turned out,w were given carte blanche 20 cast run on
The state at a time when the people were grooming under the additional
burden of financial depression.
Significant indeed was the later attitude of the North Dakota Bankers
association, which Endorsed n so many members OF which we're active in
the campaign against the Bank O North Dakota. Bankers woke up att last
to the danger in which they had involved the state in the initiated law.
The bankers association voted unanimously against a resolution condemn.ng
the Industrial commission fr its order commanding the bank to stop the
political q IN the institution.
II ever there "a a time when confidence in the banking system of the
state and nation should be maintained by every possible manner, this is the
tiue.
Every business nan and every farmer and working man in the state is
aware of that fact. The wel-beng of thousands depend upon what course
OF action is followed. The future of the state Is at stake.
Yet upon this trembling stage the politicians opposed % the presents state
administration entered and the lower house of the legislature authorized a
committee to investigate the affairs of the state industries! r"
The Industrial commission welcomes a real investigation not only of the
Rank Of North Dakota but of all the state enterprises There never has been
THE INDUSTRIAL COM
Cavalier County farmers press. (Langdon, N.D.) 1920-1921, 1921-02-24
Farm MORTGAGE Bankers In Field Again

The bank was organized for service, rather than profit and MI Paddock
points to the remarkable farm loan record made by the institution. 1t will
be recalled that although n o m has questioned the soundness of North
Dakota bonds as security certain interests working through political channels
the Bank of North Dakota, crippled as it vas by this conspiracy, went ahead
with its farm loans as best it could because of the pressing need Of the
farmers. Mr. Paddocks report says:
Bankers conservatism has been sed in the farm loan business of the
bank. The average moun per acrelo loaned by the Bank of North Dakota
based on all loans made up to December 31st, 1920, was only S14l7, while
the average assessed valuation per acre of all land in the state in 1920 "a
$2527. ad the average market value was probably we'll above $50 per acre
Bankers conservatism has ao been used in the total amount Of loans
made by the bank as compared with The legal limit authorized. Under the
law creating the Bank of North Dakota, it is permitted to make farm loans
deposits. On July 18th, 1920, it had made such loans to the amount of
$2759OO0 at Il 6 per em interest rate and had a considerable amount Of such
loans ready to close. The loans then amounted to only 81 per cen o. the
legal limit and only 81 per cent of the sinking funds then OF deposit On
October 10Th, 1920, the farm loans amounted TO only 70 per cent Of the legal
limit and only IS Der cent of the sinking funds then OF deposit
ton passed in the general election in November 1920, was designed to destroy
the Bank Of North Dakota. Prior. to the passage Of this law, mortgage loan
companies refused 70 loan money in the state in competition with the Bank
of North Dakota 6 per cent interest rate.
Immediately after the passage of this law, mortgage, loan company
representatives, at IL meeting in the Twin Cities, announced that they would
that the Bank of North Dakota a destroyed and they would longer
ave to compete with a 6 per emf interest rate. Their rateha IA always been
and is now, IN the average, approximately 81 per cent per annum"
Thus the initiated law, backed by the North Dakota Bankers association,
compelled the Bank of North Dakota to stop making farm loans because it
destroyed the fundamental service performed by the bank-that is the con
centration of public funds.
Officers OF the bank and the Industrial commission did not quit fighting,
however, and forced to adopt a lev policy by the initiated law, took steps
which will bring about the sale IF the farm loan bonds in time, so farm loans
can be continues
to preserve the credit machine of the state so hat it would operate FOR the
advantage of the people rather than for private privilege.
Seeking to destroy confidence in the Bank of NorthD Dakota, the effort also
has been made to destroy confidence in the officers Of the institution.
Cavalier County farmers press. (Langdon, N.D.) 1920-1921, 1921-02-24
Every Business In State Is Endangered

Bushes men as we'll as farmers and workers vitality anGctedb y Political Conpiracy to wreck
the Bank of North Dakota Socaned Investigation Of States bank is for the benefit o
MaGciusM isrepesentabo or part of hadninishah pres agens Audit shows sound
ness of banks condition and policy. Industrial Commission hvokes Peoples Conmor
Sense to Check This Conspiracy Before Too Late
The Little River news., 1921-01-01
CHAPTER VII.
The Face In the Draft.

The banker brought back the plush case and set it down on the table. The Jew took out his check book and be- gan to write.
 The Pearlhunter never could re- member the thoughts that came over him at that high moment of his life. For all he could recall, there were no clear thoughts at all-just loosening of the throat; relaxing of the muscles, as if he had dropped load under which he had been straining. He didn't know it. but the old banker was watching him. The old, embar- rassing question-what name to write in the check-brought him back out of the haze. He noticed that the Jews hand trembled as he wrote. It was an odd trifle to notice, but it was the one thing he could afterward clearly recall.
 The check made ont to "Pearlhunt- er," was in his fingersl Five thou sand dollars--in words, and big plain figures It was the first check he had ever owned--the first one he had ever
The Little River news., 1921-01-01

thing. but 1t couldn't be heard. The bartender set out long row of glss1es. The river men grew suddenly quiet with the gurgle of the filling.
 Each man picked up glass and stood waiting until every other man was served. The crowd was too occu- pied to notice 1t, but the Pearlhunter's knees were fairly shaking under him; his face set and pale. He was about to do the hardest thing he had ever tackled in his life, even harder than mentioning money to the Wild Rose. He picked up his glass; set 1t down pushed it back.
 "Water for mine!"
 To a man, the crowd whirled and stared. Louie Solomon swore.
 "VOt issl" he said. You make 1t foolishnessY
 "No," was the slow answer. "rm off this for keeps"
 '"H-l" growled the one-eyed fisher. man. "Since't when did y'u quitr'
 Yesterday-about sundown."
 lc IdlSCu HIS kldSS duu Clllhcu WlLu Louie Solomon-the aristocratic bour. bon against the Flatwoods spring-and drank the celebration of his great day in glass of water. The others were too busy just then, or cared too little. to press the point, or take the trouble to wonder just what and what all he meant by "yesterday-about sundown." Louie Solomon set his glass down with a bang.
 "Himmel! Dot don'dt shtruck bot tom yet. It vas all soaked up in mine throat a-ready. Fill lem up ag'in, all hands roundt. Undt dis one iss on Louie.
 "Where iss mine friendt vot trim from me twenty-t'ree dollarT' Louie asked. feeling his vest pocket as he had done probably score of times since crossing the street.
The Little River news., 1921-01-01
By DAVID ANDsRsoN
Fz 1Zlk G = = - : k 2S2y2Q eupsvsloAs ty tAe Do1eU-aGasili Compaa51

"A man was picking his way up the hf. He seemed in no great hurry, ir in the least disturbed. At the top ] the bluff he stopped and looked lck. In his brief instant of pause he fe striding away into the woods the 1on picked him out clear as day. It as the Man-in-the- Fancy Vest.
 There was no more sleep for. the ikarlhunter. Tie left the window, ent to the cabin door and felt behsud e easement where the hand had pped. His fingers came in contact tth a tiny bundle wedged between Ie logs and the door frame. He drew forth and unrolled 1t in the moon tht, deeming 1t imprudent to light E candle. Even before the moon hms fell upon the thing he knew by certain disquieting premonition what kwould prove to be-a red mask.
 He felt along the wall to the chink
 bye the table and poked his fingers tween it and the logs, where he had Acealed the packet the evening they Dyed into the cabin. It was still ere. He drew 1t forth and compared jawith the other. They were almost kntical. and of a pattern with the e he had seen that afternoon at the ice gabled cabin.
 He sat down by the table and < bpped his< chin in his palm. What 1t mean? What must 1t mean !. Is last one? He knew the meaning