Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-17
WAS NOT MEMBER OF
THE CLEARING HOUSE.;
RUN BEGAN MONDAY
Did Not Owe a Cent to 9th
er Banks in Grand
Forks.
OWES STATE BANK
ABOUT $4,000
Disagreement on Directorate
Made Impossible For 9th
y er Banks to Help.

The Peoples State bank, organized
and John J. Hastings. who, tnen'
were in the employ of the Nonpartisan
league closed its doors at ! O'CLOCK
this afternoon by order OF the Eoard
of directors.
When the bank closed, 1t owed ap.
rroximatcly 100000 to depos1tors ano
approximately $1oo. SIX N 90" S0ascwna ani ;ta
surplus $1,000. The gross assets are
listed at $ssO.ooo. ,
The Bank Of North Dakota had So
6CU on re-deposit in the Peoples State
bank, besides which the local instltu1
ton owed the state institution about
$4,000 in borrowed money.
Draft Made.
:, draft for 81 500 made two days
ago by the Bank of North Dakota is
'heiicved to have forced the closing to-
day. Officials of the bank refused 10
that a run, which began Monday
caused the closing. Savings bank le
l,usitors made the run, 1t was salo.
Officials refused to state now 1nucn
money had been withdrawn during the
week. but it is believed to be less lhan
$4,000.
The Peoples State bank was not
member of the Grand Forks Clearing
House association. The member BANKS
Including two banks in Fast Grand
Forks, showed q Willingness through
out<the week to help the Peoples 3
State bank. and made a denn.te pl"p,
os;tion. which. if carried out, would
. have kept the bank open. A disagfec-
ment on the board of directors, how.
ever, made it impossible to carry 0ns
the PLAN, rs
- Wires Iofthue.
c. Gordon, cashier of the bank.
wired O.. Il. IsethuA. state bank ex.
A. antuer, to come to Grand Forks ana
=, V shsj u AZ seak Kn,,taon man
sasbfs sras siss Gal,k, refused to make any
@stasements to a representative OF ins
SaHerald They simply said that the
Il. ctIs.ng was caused by run wh1cn was
Z x by Sensational head
sIiines,, in The Herald. f. B. Feetham,
,nttnrney forithe bank said the closing
vas necessitated because of short
age ri readS cash.
The mcEabers of the board of direc-
to:s. all Of whom are known as mem
bars OF the Nonpartisan league. held
!; a*Tmeeting here this morn ng ana de-
~. ci;ied to close. At l o'clock, the, fol-
loving notice was placed on the door
! 20. the bank: :,
"Closeu .bN order Of the board of di-
@rsrtOrS.
Differences on Board.
During the week, officers ot the
bank and various members OF the
buard conferred with bankers repre-
stn,ing the members of the Clearing
House association. and everything was
done to help the bank out. put It was
impossible for the directorate II
agree. ii was sad. Apparently, there
have been some differences on the
board of directors for some time, foi
IL: media .ely after the annual meeting
early in January there were report:
,ot trouble. It was reported, for in
stance, that Gle Knutson. who pre-
I.;ously had been Il member or thf
heard, was not reelected because O
r.me Opposition on the board. Wher
asked about the report, officials OF tn
'nrnk said that there was no sIci
trouble, and, to prove their state
,ugnts. said that Mr.. Knutson mac
hccn chosen manager OF the bank. ~
il. not a. member or the poard Oh Vi
,s.;ors however.
In connection with the closing o
the Peoples State bank, 1t is inter
es.ing to note that this bank is tn
ony one in the city which is indebt
cu 10 tho Bank OF North Dakota. Tn
lr,rsI National bank, the Northwest
nrr National bank, the First, Sav
i:h la,h and the Northern State banl
~ not owe a cent to the Bank o
, Nur,h Dakota The other Gran'
Forks banks have no redepostts from
80 safe bank and are under no OBJ
i~.sions to the state bank. More
over, the Peoples State bank did no
cv.c a cent to the other Grand Fork
l,anks or to the East Grand Fork
hanks, there being no business con
rections whatever. The membe
l.1ks Of the Clearing House associa
,.un did make every effort, however
"a help the Peoples State bank. but
was. impossible to- reach any agree
ntent.
No Excitement.
The closing caused no trouble or n
e.cilement at the bank. SHORTY al
- the doors were closed. several de
,,siiors appeared in the hall an
asked to e.t In. Mr.. knutson c1
nlained to chem that the director
Nd closed the bank and that tn
:. lnnk was a .memher of the Dt
,.ositors' Guaranty Fund commission
which places state guarantee benin
all deposits in hanks which are mem
lers of jthe commission Insid'
members bf the board of director
we're found in two groups.t Those
enc group were talking to each otne
and those in the other wore sittin,
siient, but apparently. thinking.
THE Herald representative mad
reveral attempts to get "a statemer
II facts and Figures rrom the ban
oftcials. Mr.. Gordon. the cashic
WAS appealed to first, but, he refuse
70 reply. II will make no MOI
statements over my name \ he said.
i Do uA