The Glenwood post., 1921-03-26
LEAGUE FALLACIES
EXPOSED TO LIGHT
Investigation Of Affairs in
North Dakota Shows Its
BanefuI Influence
WEIRD BANKING IDEAS

1t is interesting at this time to take
stock of what has been happening in
North Dakota, the only state In the
Union that ever gave itself over to gov
ernment by the disciples of Karl Marx
through an organization known as the
Nonpartisan League.
For nearly five years North Dakota
has had Nonpartisan League rule and
the plight of that once prosperous state
is now ptiful. Despite the fact that
taxes have increased more than 200 per
cent, the state finances are in such con-
dition that salaries of state employees
cannot be paid, and the question Is
whether there will be enough money to
keep the personnel of the penitentiary,
insane asylums and blind asylums on
the job.
The Socialists dominating the Non
partisan League created an industrial
commission with greater powers than
ever before had been given to any state
commission. They created state bank
into which they legislated the funds of
the cities, counties and school districts,
deposits at one time aggregating $685.
100000, over which was placed a man
who had run livery stable all his life.
The commission also was empowered to
engage in the milling of -four, the erec-
tion of homes, lending on farms, and
the right to do as it pleased with the
state funds.
The state bank, called the Bank of
North Dakota, was the capstone of the
Socialist edifce. 1t paid the cities,
counties and school districts per cent.
on their deposits and reloaned or rede-
posted them in hundreds of state and
national banks, loans being at 6 per
cent and redeposits at 4 per cent. In
addition to the absolute control of
these funds, the industrial commission
was to have the expenditure of the
proceeds of bond issues totalling $17,-
100000 that had been voted.
With all this money to carry. out
program of benefcence the question is,
what did they do with it to bring
about the bankruptcy of n rich agri-
cultural state.
No Accounting Required.
The Bank of North Dakota was oper-
ated on the theory that there would
never be an occasion to render an ac-
counting for the money deposited in
it. No authorities, state or national,
had the right to question the reports
that the bank gave out and the auditor
of the state was not allowed to see its
books. The disposal of the funds of
the bank was declared to be confden-
tial,'' and the request to publish list
of banks that were favored with rede-
posits and the amounts that they were
favored with was regarded as an i'm
pertinent inquiry that was never au-
swered until the voters initiated law
calling for an Independent investiga-
tion of the bank and of the state man
aged industries The proposed law was
resisted by the Nonpartisan League,
which asserted that an investigation
would wreck the state bank-and they
told the truth, because. the revelations
of favoritism, incompetence, fraud
and graft are so shocking that move
is now on to recall the principal state
officials and "turn the key in the door
of the Bank of North Dakota.'
Acted as Pipe Line.
Examination of the Bank of North
Dakota has shown that this bank was
in effect pipe line through which
public funds flowed into the ventures
of the Nonpartisan League, its socalled
cooperative stores, subsidized newspa.
pers, sisal trust, mushroom banks, etc
League" banks were favored with an
enormous amount of state money where
they were relending it to the Townlcy
promotions. Times certainly were good
for the Nonpartisan League-until the
crash came and the depositors Of thu
state bank needed their funds, and ther
these funds were not available. TIL,
bank had recourse to refusal to pay
the checks or drafts Of depositors. Ap
parently there isn't any law to maxi
them do 80, and while the bank manage
ment 10 insisting on the repayment o.
it, it is denouncing those who follow
It's example as actuated by "wal
Street" and attempting to "wreck th'
peoples bank"
Some thirty-six banks of North Da
kota have failed. They had in loAni
and rsdsposits shout d ,3O0, 900 Of sta.
funds; advances by the Bank Of Nortl