Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-23
Letter. Ready To Go To The
Banks Demanding That
They Raise Their Reserve
Fund To The Minimum
Required By Law Within
80 Days; Administration
Tightens Up On Law To
Serve Its Own Purpose.
.lBy Staff CORRESPONDENT. }


Bismarck, N. D., Feb. 23.-Letters
Informing oil banks of the state tha
reserve funds must be raised to the
minimum required by the law within
the next 80 days were ready to be
mailed this afternoon from the office
of o. f. Lofthus, state examiner. 1t
was pointed out here today that what
ever might be the political ends which
the state administration was trying to
serve by taking this action it was
matter of fact simply reinstating the
legal requirements which had without
anv authority of law been tacitly abb
rogated by the administration for some
months past with view supposedly
of assisting farmers of North Dakota
in holding their crops.
Will Hit Farmers.
Now that the administration to
serve it's own purposes is Tightening
up on the law again it is generally felt
that 1t will ,be the farmers rather than
the bankers who will be hardest hit.
AS far as the actions affecting the
present probe Of state industries is
= concerned the independents generally
agreed that there was no possibility Of
such result ensuing.
Graangaard's Idea.
Farmers of North Dakota are the
class which will be hardest hit by this
latest act of the administration, NJ. O.
Graangaard, chairman of the house
committee on banking, and the house
audit committee declared today. 80
far as the banks who have conducted
their business along proper business
lines are concerned the order to bring
ali reserve, funds up to the required
amount simply means that they will
have. to make the farmers they have
been carrying on credit pay up" Mr..
Graangaard said. These banks need
So xy{@k1 <1o1,
compel payment If they are forced to
By the administration. 1t will simply
mean that the farmers whose accounts
have been allowed to run along by the
bankers will have to sell their wheat
and live stock which they have been
holding s ,i% for * better prices taks A + their M
so as a matter Of fact it is tire
farmers on whom the action off their
farmer administration will react.
A Difficult Place.
"Of course, in the case of banks
which have been, loaded UP with paper
of the league enterprises the situation
is different. They may find themselves
in a rather difficult situation, as re-
suit of this order. and considered from
that point of, view the order may be
rather a good thing"
Mr.. Graangaard expressed his con.
viction that the real object Of the. or.
der was simply another attempt tc
head off the house probe Of the state
industries.
''They apparently hope that bankers
of the state will bring pressure to beal
to force a cessation OF the invcstiga>
tion.'' he said. II know this hope viii
be doomed to disappointment, how
ever, as the bankers in general fee
that it is the utmost Importance fo1
the final good Of the state that tn,
probe shall be vigorously pushed. ant
the people be given the true facts.
when this is done it should b.
possible to get the state back on {
sound business basis through the will
Of the people"
Quick Action Needed.
One point of view which is bein,
frequently expressed in connectio,
with the present situation is that it i
making the necessity for quick actor
in connection with recall election
more and more evident.
1t is pointed out that there is NJ
possibility Of financial stability for tn
state as long as the present Nonpartl
San league officials re,,'ain in power.