Cavalier County farmers press. (Langdon, N.D.) 1920-1921, 1921-03-03
State Industries Had
No Evil Effects

'"These figures show the utter alb
surdity of politicians charges that the
present state administration, the Bank
of North Dakota and the state indus
tries ire responsible for the credit
stringency. An analysis of the condi-
ton Of banks makes it as clear as day
that allegations made against the adj
m~inistration are for the purpose of
partisan politics only and have no
basis in fact.
LAS I have shown, the private state
banks are $5o,O0O,0OO shy of what
should be their usual Now
the state has put into the state indus
tries only $1,O5O,O0O. Of that sum,
100000 has gone to labor, which
represents money that has stayed in
the state. The rest, $75O,OOO, has gone
into materials and represents invest
ment in the state mill and elevator at
Grand Forks. The state has something
to show for it.
"On a basis of S75O,OOO investment,
the state actually can be held respon-
sible for only that part of the de1ation
in the resources of all the banks. That
sum represents N and a half per cent
Of the total 10000 ,OOO. In other
words. the private state banks them
selves have suffered % and a half per
cent Of the deffation: the state indus
tries r responsible for one one and a
half per cent"
Mr.. Thatcher's statement bears out
the declarations of F. w. Cathro. d.
rector general of the Bank of North
Dakota. before both senate and house
investigating committees. that if the
private banks of the state will pay
their obligations to the Bank of North
Dakota, that institution would be in no
way embarrassed and could easily
meet the on it engineered by po-
litical opponents after the passage Of
the initiated law, which gave political
subdivision treasurers the option of
depositing funds where they would.
Mr.. Thatcher's analysis also goes a
long way to explain the position Of
Mr.. Cathro. who had adopted the pol
icy of permitting funds to remain in
banks where the various treasurerS
had deposited them, because with
drawal probably meant closing hun
dreds of banks. He maintained that
policy. up to the point of being sent
tee. because. in addition. he said, it
would be disastrous to confidence in
the banking system to have the actual
condition of privately owned banks.
every one of which was affected,
dragged out in the newspapers to
scare the people.
With full realization Of the oppor-
tunity it offered political enemies to
make capital, the Industrial Commits
sion sustained Mr.. Cathro also by or
dering the Bank of North Dakota to
halt payment for the time being on
withdrawals by various political sub
divisions where there was no sound
evidence that they were made for any
other purpose than that of ess'~'rrass-
ing the bank. To meet these with
drawals it would have been r""eSsrry
for the Bank of North Dakota call,
in turn. on the private bans. End
the truth of it is they could not pay.
The Industrial Commission and Mr.
Cathro fought for Il long time against
the attacks of political enemies tc
maintain their policy and protec, ;iit
credit fabric as much as possible
The so-called investigation by the
house committee, however, gave anti.
administration newspapers the semi.
basis for wild yarns about the Bank OF
North Dakota being insolvent. unubIe